Final Trade: Sensex dips 542 pts, Nifty at 24,062 as markets close in red; midcap IT stocks bleed

Stock Market Closing: After showing signs of recovery this week, Indian benchmark indices dragged sharply lower on Thursday July 24. With Sensex closing 542 pts lower and Nifty at 24,062, weighed down by IT and banking stocks. However, sentiment was supported by optimism around a potential India-UK free trade agreement (FTA) during Prime Minister Modi’s ongoing UK visit. Traders expect the FTA to reduce duties on crucial goods and open up bilateral market access, keeping downside in check despite sectoral drag.

The Nifty IT index plunged over 1 per cent, under pressure from steep losses in midcap IT counters. Coforge and Persistent Systems tanked over 7 per cent each, reflecting investor nervousness ahead of upcoming earnings and amid broader global tech selloffs.

Among the biggest casualties of the day was IEX (Indian Energy Exchange), which hit the lower circuit twice and nosedived by 23 per cent following jitters over the new market coupling framework being rolled out in the power trading space.

On the broader market front, the Nifty Midcap and Smallcap indices were down nearly 1 per cent each, in line with the weak sentiment across largecaps.

However, not all was gloom, stocks like Force Motors, Senores, Thyrocare and Mukand saw smart buying in the BSE smallcap segment, outperforming in an otherwise tepid market.

On the newsflow front, Karur Vysya Bank faced pressure due to negative reactions around its bonus issue development, while Bajaj Consumer remained in the red after investor disappointment over its share buyback announcement.

Analysts are now eyeing 25,250 as the immediate resistance for Nifty, while 25,000 is being pegged as a crucial support. If the benchmark breaks below this level, further downside pressure could emerge, especially in the absence of positive global cues.