Sensex plunges over 650 points today

Sensex plunges over 650 points today
Sensex plunges over 650 points today

The stock market experienced a significant downturn today, with the BSE Sensex plummeting by over 650 points. This drop has brought the Nifty50 close to the 23,250 level, raising concerns among investors and market analysts. The Sensex’s dramatic fall is attributed to a mix of global economic uncertainties and domestic financial concerns.

Despite the sharp decline, the Nifty maintained some positive momentum but encountered resistance at the 23,500-23,600 levels. Market experts suggest that unless these barriers are breached, the bullish sentiments might remain capped. Investors are advised to stay informed and cautious during this volatile period.

The market’s performance today underscores the importance of keeping a keen eye on economic indicators and global events that could further impact market stability. For those actively trading or invested in the market, it’s crucial to assess risk exposure and consider strategic decisions to mitigate potential losses. Traders are also keeping an eye on upcoming economic data releases and policy announcements, which could influence future market movements.

Indian shares have fallen sharply as the shockwaves of the escalating trade war between the United States and China reached Mumbai. The Sensex, India’s key stock index, displayed significant losses on the facade of the Bombay Stock Exchange (BSE) building. The drop in the markets was exacerbated by underwhelming capital expenditure growth, particularly hitting infrastructure-linked stocks hard following the union budget announced on February 1, 2025.

European leaders warned on Monday that U.S. President Donald Trump’s threat to expand tariffs to the EU risked sparking a wider trade war. Such a trade conflict would likely result in economic harm on both sides of the Atlantic, contributing to the market volatility seen globally.

Sensex’s sharp decline overview

Indian equity markets ended lower on February 3, 2025, with the Nifty settling at around 23,350 and the Sensex down by 319.22 points or 0.41 percent at 77,186.74. The Nifty was down 121.10 points or 0.52 percent at 23,361.05. The biggest Nifty losers were L&T, ONGC, Bharat Electronics, Tata Consumers, and Coal India.

The top gainers were Bajaj Finance, M&M, Wipro, Shriram Finance, and Bajaj Finserv. In terms of sectoral performance, consumer durables and IT were the positive movers, while capital goods, energy, metal, oil & gas, power, and PSU indices declined by 2-3 percent. Technical analysts shared their insights on the market’s movements.

Rupak De from LKP Securities noted that the Nifty remained volatile but managed to close above the critical 21EMA, with support at 23,200 and 23,100 and resistance at 23,400. Jatin Gedia from Mirae Asset Sharekhan expects the index to hold the crucial support zone between 23,250 and 23,209 and resume its upward movement towards 23,820 – 24,000. Nagaraj Shetti from HDFC Securities observed that the Nifty showed high volatility and closed lower amidst a range-bound session, with immediate support at 23,200 levels.

Shrikant Chouhan from Kotak Securities advised strategic level-based trading due to the market’s volatile texture. The Indian Rupee ended 58 paise lower at a fresh record low, closing at 87.19 per dollar. Market experts attributed the market pressure to global pessimism due to tariff-related trade wars and the depreciating rupee.

Strong growth recovery is seen as essential for banking stocks to rebound. As markets closed on a lower note, investors await further updates and tomorrow’s market action.

Harper Johnson

Harper Johnson stands at the forefront of digital marketing, where she dissects and interprets the impact of online advertising trends, social media dynamics, and search engine algorithms on consumer behavior.

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