Market crash: Why Sensex tanked 1,100pts, Nifty fell below 24,350 intraday

Why markets fell today: Indian stocks were reeling under severe pressure once again on Tuesday, with the BSE Sensex falling 1,136 points or 1.39 per cent to its intraday low of 80,612, while the NSE’s Nifty50 slipping 362 points or 1.46 per cent at 24,306 in intraday trade.   At close, the BSE Sensex finished at 80,684.45, down 1064.12 points or 1.30 per cent, while NSE's Nifty50 closed at 24,336, down 332.25 points or 1.35 per cent.

 

The fall in the Indian stock market came amid continuous selling by foreign institutional investors (FIIs) and ahead of the US Federal Reserve rate cut decision due on Wednesday. 

 

On Monday, FIIs sold shares worth Rs 278.70 crore on December 16, while DIIs sold equities worth Rs 234.25 crore. 

 

Further, the widening of India's trade deficit to a record $37.8 billion in November might be playing on the minds of investors. This was fuelled by a surge in merchandise imports. Notably, inbound gold shipments saw a 4.3-fold jump, driving overall imports up 27 per cent to an all-time high of nearly $70 billion.

 

"Widespread pessimism prevails across all sectors ahead of key policy decisions from the US Fed, BoJ, and BoE. While the market has already factored in a 25bps cut from the US Fed, it remains vigilant for any hawkish signals. The BoJ and BoE are largely expected to maintain their current rates for the year. Concurrently, the INR has depreciated to an all-time low, and a record-high trade deficit is exacerbating the pressure. FII outflows persist due to rising US bond yields and a strengthening dollar, further contributing to the prevailing pessimism," said Vinod Nair, head of research, Geojit Financial Services.

 

Top gainers and losers

 

29 out of 30 bluechip stocks were in the red zone on the BSE Sensex with Bharti Airtel being the top loser falling 3 per cent, followed by IndusInd Bank (down 2.46 per cent), JSW Steel (down 2.4 per cent), TCS (down 2 per cent), Asian Paint (down 1.9 per cent) and Larsen and Toubro (down 1.9 per cent).   Read: Today Top Gainers  | Today Top Losers

 

That apart, FMCG major ITC was the sole stock that ended marginally higher on the BSE Sensex.

 

Meanwhile on the NSE, the losers included Shriram Finance (down 5.27 per cent), Grasim Industries (down 3.2 per cent), Hero MotoCorp (down 3 per cent) and Bharti Airtel (down 2.8 per cent).

 

On the other hand, the top gainers on the index included Cipla and ITC, up around 0.14 per cent each. 

Sectoral trends

 

Among sectoral trends, except Nifty Media (up 0.02 per cent) all sectors were trading in negative with the Nifty PSU Bank (down 1.82 per cent) and Nifty Metal (down 1.63 per cent) falling the most in trade.  

Other sectors included Nifty Financial Services, down 1.55 per cent, and Nifty Oil and Gas, falling 1.61 per cent. Moreover, Nifty Pharma, Nifty Private Bank, Nifty Healthcare and Nifty Consumer durables also closed in red. 

 

Broader markets, too finished lower with the BSE SmallCap index slipping 0.52 per cent, and the BSE MidCap index tanking 0.65 per cent on Tuesday.  Tech levels to watch 

Technical experts say that over the last 2-3 sessions, Nifty has been consolidating within the 24,300-24,800 range, signalling indecision and range-bound trading. This consolidation phase is likely to continue until a decisive breakout determines the next trend.

  "The daily RSI near 50 indicates neutral momentum, suggesting neither buyers nor sellers hold a clear advantage. The 24,300 level acts as strong support, underpinned by sustained buying interest, while immediate resistance is seen around 24,600, where selling pressure could emerge. A break above or below this range will dictate the near-term direction, making this zone crucial for traders to monitor closely," said Jigar S Patel, senior manager - technical research, Anand Rathi Shares and Stock Brokers.   As per Patel, key resistance to watch from here ranges between 24,800-25,000, while key support lies between 24,000-24,300 for Nifty50.