Closing Bell: Sensex falls 516 points, Nifty slips below 24,200 - Why markets fell today? Anil Singhvi explains

Stock Market Closing Bell: Domestic equity markets closed lower on Friday amid weakness in banking and financial stocks, rising crude oil prices, rupee depreciation and profit booking after the recent rally.

The BSE Sensex declined 516.33 points, or 0.66 per cent, to settle at 77,328.19. The Nifty 50 fell 150.50 points, or 0.62 per cent, to close at 24,176.15.
Market expert Anil Singhvi said multiple global and domestic factors affected investor sentiment during the session.

According to him, concerns over tensions involving the US and Iran led to caution in global markets and supported crude oil prices near the USD 100 per barrel mark.

“Crude is near USD 100 and is not falling sharply. At the same time, the rupee weakened again today. That has impacted market mood,” Singhvi said. He added that weakness in Asian markets and mixed signals from the US also contributed to the decline in domestic equities.

Banking Stocks Weigh On Indices

Banking and financial stocks remained under pressure throughout the trading session and dragged benchmark indices lower.

The Nifty Bank index fell 1.31 per cent, while Nifty Financial Services declined 1.66 per cent. Nifty PSU Bank emerged as the top sectoral loser with a decline of 3.06 per cent.

Among Sensex stocks, State Bank of India dropped 6.75 per cent and was the biggest loser on the index after its quarterly earnings. HDFC Bank declined 1.83 per cent, while Bajaj Finance slipped 1.76 per cent.

Axis Bank lost 1.60 per cent, while Mahindra & Mahindra fell 1.45 per cent. Tata Steel, UltraTech Cement and Larsen & Toubro also ended lower.

Singhvi said weak results from SBI added pressure on banking counters and impacted the broader market. “Bank Nifty weakened mainly because of SBI results. That also pulled the Nifty lower,” he said.

IT, FMCG Stocks Limit Market Fall

Despite the weak trend, buying information technology and consumer-focused stocks helped limit losses in the broader market. Titan Company surged 4.64 per cent and emerged as the top Sensex gainer after its quarterly earnings announcement. Asian Paints advanced 2.79 per cent, while Infosys gained 1.51 per cent.

HCLTech rose 1.25 per cent, and Tech Mahindra added 0.95 per cent. Among sectoral indices, Nifty IT climbed 1.21 per cent, while Nifty FMCG rose 0.19 per cent. Nifty Consumer Durables gained 0.69 per cent.

Singhvi said consumer and FMCG companies continued to report healthy earnings despite inflation concerns. He said companies linked to consumption demand were showing resilience and attracting investor interest.

Broader Markets Show Mixed Trend

Broader markets showed a mixed performance during the session. The Nifty Midcap 50 index rose 0.06 per cent, while the Nifty Smallcap 100 gained 0.22 per cent. However, the Nifty Midcap 100 and Nifty Midcap 150 indices ended marginally lower.

The Nifty 500 index declined 0.42 per cent. Among other sectoral indices, Nifty Metal fell 0.87 per cent, and Nifty Oil & Gas declined 0.94 per cent. On the other hand, healthcare and chemical stocks witnessed selective buying.

Nifty Healthcare rose 0.17 per cent, while Nifty Chemicals gained 0.18 per cent. Singhvi said markets had turned slightly overbought after the recent rally and some profit booking was expected.

“Markets were looking overheated after continuous gains. Some cooling off was necessary,” he said. He also said volatility indicators were showing signs of a rise, and investors remained cautious ahead of the weekend.

“Friday factor is again visible in the market. Traders are carrying extra caution ahead of the weekend,” he added.

Key Levels To Watch

On the market outlook, Singhvi said 24,125 would act as an important support level for the NIFTY 50. For the Nifty Bank, he said the 55,100-55,400 range would remain a key support zone.

He said investors should not panic unless Nifty closes below 24,000 and Bank Nifty closes below 54,500. “Till then, the strategy remains buy on dips,” Singhvi said.

According to him, fresh buying can be considered if Nifty closes above 24,350 and Bank Nifty crosses 56,100 levels. On the broader market, Singhvi advised investors to remain cautious in mid-cap and small-cap shares for now.

“Do not make aggressive fresh buying or selling in mid- and small-cap stocks at present. Let the market stabilise and then take a call from Monday,” he said.