Benchmark stock market indices closed lower for the second consecutive day, largely due to geopolitical tensions between India and Pakistan, which negatively impacted investor sentiment.
Market Overview
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The S&P BSE Sensex dropped by 588.80 points, closing at 79,212.53.
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The NSE Nifty50 fell by 207.35 points, ending at 24,039.35.
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Initially, the markets opened higher but soon saw a decline of over 1%. While heavyweight stocks helped recover some losses later in the session, the overall market trend remained negative.
Sector and Stock Performance
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TCS emerged as the top gainer on the Sensex, rising by 1.36%, followed by Infosys (+0.60%) and Tech Mahindra (+0.50%).
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Adani Ports was the biggest loser, plunging 3.61%, with Axis Bank not far behind, dropping 3.48%. Other significant losers included Eternal, Bajaj Finserv, and Power Grid, with declines ranging from 2.56% to 3.41%.
Sectoral Performance
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Nifty IT was the only sectoral index to close in the green, gaining 0.72%.
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All other sectors ended in the red:
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Nifty Media suffered the worst loss, down 3.24%.
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Nifty Realty and Nifty Pharma fell by 2.80% and 2.24%, respectively.
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Nifty Metal and Nifty Healthcare also saw declines of 2.10% and 2.42%.
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Market Volatility
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The India VIX, which measures market volatility, spiked by 5.58%, reflecting the market's uncertainty amid geopolitical concerns.
Outlook
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Pranay Aggarwal, CEO of Stoxkart, attributed the downturn largely to the geopolitical tensions.
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Palka Arora Chopra, Director of Master Capital Services Ltd, suggested that investors should focus on upcoming earnings results, demand trends, capex plans, and overall business outlook to gauge the market’s future trajectory.
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Swapnil Aggarwal, Director at VSRK Capital, remained optimistic, suggesting that while the current situation is sentiment-driven, a bounce back could be expected in the coming week, depending on how the geopolitical situation develops.
Investor Sentiment
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Although the market is facing short-term distress due to geopolitical risks, experts believe that the volatility is more sentiment-based, with a potential recovery once tensions subside.
