Markets Continue Downward Trend as Nifty Drops Below 24,200 and Sensex Falls 852 Points
Indian Equity Markets Extend Losing Streak for Second Consecutive Session
On April 23, the Indian equity markets continued their downward trend, following a lack of progress in US–Iran negotiations that pushed crude oil prices above $100 per barrel. This development dampened investor sentiment, leading to a weak market performance.
The market started the session on a negative note, with the Nifty slipping to an intraday low of 24,134.80. The decline was driven by selling in auto, IT, and realty stocks, as well as weakness in the broader indices. At close, the Sensex was down 852.49 points or 1.09 percent at 77,664, while the Nifty was down 205.05 points or 0.84 percent at 24,173.05.
Sectoral Performance
The sectoral front saw mixed performance, with some sectors gaining while others declined. The capital goods index gained 0.4%, while the healthcare index rose 1.6%. The energy index also gained 0.25%, and the media index surged 0.9%. On the other hand, the auto, consumer durables, and PSU Bank indices declined 2% each, while the IT, realty, metal, and private bank indices declined 1% each.
Biggest Losers and Gainers
The biggest losers on the Nifty were Trent, M&M, Shriram Finance, SBI Life Insurance, and Tech Mahindra. In contrast, the biggest gainers were Dr Reddy's Labs, Cipla, Jio Financial, Adani Enterprises, and Apollo Hospitals.
Stock-Specific Action
Read also: Adani Energy Solutions Reports 5.7% Increase in Q4 Net Profit to Rs 684 Crore
Some stocks witnessed significant price movements, driven by various factors. Tips Music shares gained 9% after its Q4 net profit jumped 93%. Jio Financial Services also gained 4% after signing an agreement with Allianz Group to form an insurance joint venture. Cipla shares surged nearly 6% following USFDA approval for the first AB-rated generic of Ventolin HFA.
On the downside, L&T Technology Services slipped nearly 3% despite reporting better-than-expected Q4 earnings. KP Energy jumped 3.5% after receiving an inter-state electricity trading licence. Tata Communications added nearly 5% despite a 74% decline in Q4 consolidated profit.
Outlook for April 24
Technical analysts predict a bearish trend for the Nifty, with the zone of 24,080–24,050 acting as immediate support. A break below 24,050 may lead the index towards the 23,940–23,900 zone. On the upside, 24,300–24,330 remains a key resistance area.
| Sector | Previous Day's Performance | Today's Performance |
|---|---|---|
| Capital Goods | 0.4% gain | 0.4% gain |
| Healthcare | 1.5% gain | 1.6% gain |
| Energy | 0.2% gain | 0.25% gain |
| Media | 0.8% gain | 0.9% gain |
| Auto | 2% decline | 2% decline |
| Consumer Durables | 2% decline | 2% decline |
| PSU Bank | 2% decline | 2% decline |
| IT | 1% decline | 1% decline |
| Realty | 1% decline | 1% decline |
| Metal | 1% decline | 1% decline |
| Private Bank | 1% decline | 1% decline |
Investor Takeaway
Investors should be cautious and consider diversifying their portfolios due to the current market downturn.
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