India’s equity benchmarks fell again after a day’s break in the previous session, driven by the loss of big names such as Infosys, Reliance Industries, ITC, HDFC, Larsen & Toubro, Tata Consultancy Services and Maruti Suzuki. Benchmarks traded well for most of the day, according to analysts, but selling pressure over Nifty’s 17,600 resistance level in the last hour of trading has led to a sharp correction in the market. Sensex fell 825 points from the day’s highests, and Nifty hit a daytime low of 17,354.
The Sensex fell 323 points to close at 58,341 and the Nifty 50 Index fell 88 points to close at 17,415.
“According to our research, maintaining above 17,400 levels will be an important level for Nifty to remain positive in the short term. If the market can maintain 17,400 levels, it will reach 18,000 levels. We can see positive momentum towards it, “says Vijay. Dhanotiya, Lead Technical Research Analyst at CapitalVia Global Research.
Seven of the 15 sector gauges compiled by the National Stock Exchange fell, driven by a 1.5% drop in the Nifty IT Index. Indexes for Nifty Auto, FMCG, Pharmaceuticals, Healthcare and Durable Goods also fell 0.5-1.3%.
Meanwhile, Nifty Bank, Media, PSU Bank, Private Bank, and Oil and Gas indices rose.
The Nifty Midcap 100 Index fell 0.4% and the Nifty Small Cap 100 Index rose 0.63%, resulting in a mix of mid-cap and small cap stocks.
Eicher Motors is Nifty’s top loser, with its share price down 2.8% to close at Rs 2,526. Tata Consumer Products, Maruti Suzuki, Grasim Industries, Infosys, ITC, Cipla, Reliance Industries, Tata Motors, Divi’s Labs, Tech Mahindra, Tata Steel and HDFC Life also fell 1.4-2.8%.
Meanwhile, ONGC, Adani Ports, Coal India, NTPC, Kotak Mahindra Bank, Bharat Petroleum, Indian Oil, ICICI Bank and PowerGrid made a profit.
The overall market width was positive as 1,953 shares closed at highs and 1,336 shares fell at BSE.