Closing Bell: Sensex falls 931 points, Nifty slips below 23,800 - Why did stock market crash today?

Equity benchmark indices ended lower on Thursday, with the BSE Sensex falling 931.16 points to close at 76,631.74, down 1.20 per cent, amid profit booking at higher levels and weak global cues.

The NSE Nifty declined 222.25 points to settle at 23,775.10, down 0.93 per cent, snapping its five-day gaining streak. Selling pressure intensified in the last hour of trade after a volatile session.

Top gainers and losers

Add Zee Business as a Preferred Source

Among Sensex stocks, BEL rose 1.39 per cent, NTPC gained 1.26 per cent, TCS advanced 1.18 per cent, and Power Grid added 0.97 per cent. HCL Tech, Tata Steel, Tech Mahindra, ITC and Sun Pharma also ended with mild gains.

On the losing side, IndusInd Bank declined 3.63 per cent, followed by Larsen & Toubro, which fell 2.88 per cent and Eternal, which dropped 2.57 per cent. HDFC Bank and Kotak Bank fell 2.13 per cent each, while ICICI Bank declined 1.97 per cent and SBI lost 1.91 per cent.

Other major laggards included Titan, UltraTech Cement, M&M, Trent, Bajaj Finance and Bajaj Finserv, which fell between 1 and 2 per cent. Reliance Industries, Infosys, Axis Bank and Adani Ports also ended lower, weighing on the indices.

Broader market trend

Broader market indices showed a mixed trend even as the benchmark indices ended in the red. The Nifty 100 fell 0.73 per cent, and the Nifty 200 declined 0.54 per cent.

However, select indices outperformed. The Nifty Next 50 rose 0.19 per cent, while midcap indices gained up to 0.32 per cent. Small-cap indices remained largely stable, with marginal gains and losses across segments.

Other broader indices such as Nifty 500, Nifty Total Market and Nifty LargeMidcap ended lower, indicating mild pressure in the wider market.

Sectoral performance

Sectorally, indices ended mixed. Banking and financial stocks saw significant selling pressure. The Nifty Bank declined 1.58 per cent, while the Nifty Private Bank fell 1.75 per cent, and the PSU Bank index dropped 1.27 per cent.

Other sectors such as auto, FMCG, realty, oil and gas and consumer durables also ended marginally lower.

On the positive side, Nifty Metal rose 1.25 per cent. Pharma and healthcare indices gained up to 0.71 per cent, while IT index advanced 0.22 per cent. Chemical and mid-smallcap indices also ended with mild gains.

Expert view: Siddhartha Khemka

Siddhartha Khemka said markets declined after the recent sharp rally as investors turned cautious amid global and domestic headwinds. “Indian equities traded lower after yesterday’s sharp rally as markets took a breather. Nifty saw profit booking as investors await further developments on the West Asia conflict,” he said.

He added that sentiment is likely to remain cautious in the near term, with markets sensitive to geopolitical developments and news flow.

Khemka said weak global cues and continued foreign institutional investor outflows also weighed on sentiment. He noted that FII outflows stood at Rs 37,934 crore in April, impacting liquidity.

He added that the rupee weakened to 92.8 against the US dollar, while India VIX rose, indicating higher volatility in the market. Khemka said fresh geopolitical concerns also affected sentiment after Donald Trump said US forces would remain deployed around Iran until a final agreement is reached.

He added that concerns over possible ceasefire breaches and continued tensions in West Asia further reduced risk appetite among investors.

Why did stock market fall today?

Market expert Anil Singhvi said the fall was also due to technical factors, including resistance near the 24,000 level on Nifty. “24,000 is a high psychological level for Nifty and there is heavy call writing at this level,” he said.

He added that the Nifty broke the previous day’s low early in the session, which weakened sentiment and reduced fresh buying. Singhvi said crude oil prices are trading near $98 per barrel, close to the $100 mark, which is negative for markets.

“Even a small rise in crude oil creates pressure on the market,” he said. He added that foreign investors were sellers in the previous session, while global markets remained weak with US futures soft and Asian markets seeing profit booking.

Key levels and outlook

On key levels, Singhvi said 23,865 and 23,835 are immediate support levels for Nifty, while 23,750 remains a crucial level. “Below 23,750, weakness will increase,” he said. For Bank Nifty, he said 54,750 is an important level, below which selling pressure may rise further.

He said stronger support for Nifty is placed in the 23,500–23,650 range, while 54,000–54,100 is a strong support zone for Bank Nifty.

“These levels can be used for buying if the market falls,” he said. On the upside, he advised booking profits if Nifty recovers to 23,950–24,000 and for Bank Nifty near 55,500–55,700.

He said a close below 23,800 on Nifty and 54,800 on Bank Nifty would be a negative signal for short-term positions. He added that a fresh rally will be confirmed only if Nifty sustains above 24,250 and Bank Nifty above 55,800.

Singhvi said broader markets remained relatively stable, with midcap and smallcap stocks showing limited weakness. He added that strength continues in power, capital goods, defence and capital market-related stocks, which may offer opportunities on declines.