On Thursday, the Indian stock market experienced a notable decline, with the benchmark indices ending significantly lower. The S&P BSE Sensex dropped by 581.79 points to close at 78,886.22, while the NSE Nifty50 fell by 180.50 points, settling at 24,117. This downturn was driven by broad-based weakness across various sectors on Dalal Street.
The session saw a marginal increase in volatility, particularly following the Reserve Bank of India's (RBI) decision to keep key interest rates unchanged for the ninth consecutive time. This decision contributed to market unease, affecting investor sentiment. The decline was notably evident in the information technology, metal, and energy sectors, which bore the brunt of the losses.
Despite the overall market decline, the pharmaceutical sector experienced gains. Analysts have suggested that the sector may continue to see positive movement, with companies within this industry showing promising performance. The top performers on the market included Tata Motors, HDFC Life, SBI Life, Cipla, and HDFC Bank. Conversely, the major losers were LTIM, Grasim, Asian Paints, Apollo Hospitals, and Infosys.
Rail Vikas Nigam Limited (RVNL) saw a sharp decline of nearly 5% following the announcement of a 35% drop in its first-quarter profit. However, RVNL shares have surged nearly 200% this year, and analysts maintain a positive outlook for the company's performance in the coming quarters.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market's reversal to the RBI's cautious stance on inflation and growth forecasts. Nair also highlighted concerns about a potential U.S. economic slowdown, which could lead the Federal Reserve to cut rates more aggressively than previously anticipated.
Aditya Gaggar, Director of Progressive Shares, noted that the Nifty50 ended the weekly expiry day on a weak note, with a loss of 180.50 points. He observed that while the pharmaceutical sector was the best performer, the IT and metal sectors experienced the most significant corrections. Gaggar pointed out that mid and small-cap stocks outperformed the frontline index, with the Nifty50 oscillating within a broad range. He indicated that a clear market direction would require a breakout beyond the current range, with support seen at 23,965 and resistance at 24,330.
Overall, the market's current trajectory reflects heightened volatility and uncertainty, with key sectors displaying mixed performances and ongoing concerns about macroeconomic factors influencing investor sentiment.
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