BSE Sensex crashed by 1628.01 pts or 2.23 per cent at 71,500.76 on Wednesday, January 17, and Nifty 50 closed at 21,571.95, down by 460.35 pts or 2.09 per cent.

Rupak De, Senior Technical Analyst, LKP Securities, said, “Nifty witnessed a significant decline driven by profit-taking following its record high of 22,124 in the previous trading session. Wednesday’s profit booking led the index to the 21-day Exponential Moving Average, a crucial short-term moving average.“

Of the 3,900 stocks that were traded, only 1,318 stocks advanced while 2,487 stocks declined and 95 stocks were unchanged. The number of stocks that high 52-week high were 284 and those that hit a 52-week low were 17.

All sectors traded in red, except for Nifty IT (0.65 per cent at 36,966.75). Nifty Bank was at 46,069.20, down by 4.27 per cent, Nifty Private Bank at 23,800.45, down by 4.23 per cent; Nifty Financial Services at 20,541.35, down by 4.22 per cent; and Nifty Metal at 7,701.05, down by 3.03 per cent. HDFC Bank stock dragged the Nifty Bank, slumped by 8.16 per cent and closed at ₹1,570. 

Vinod Nair, Head of Research, Geojit Financial Services, said, “A nosedive correction in banking stocks, along with concerns over delays in US FED rate cuts, impacted market sentiments. The addition of discouraging Chinese growth data and rising US bond yields, also resulted in widespread profit-booking. Given the elevated valuations, coupled with the fact that optimism regarding earnings and GDP growth for FY24 is already reflected in the market, triggered the correction.”

Major stocks that closed as gainers on the NSE were Apollo Hospitals, HCL Technologies, Tech Mahindra, SBI Life, and LTI Mindtree. Meanwhile, HDFC Bank, Tata Steel, Kotak Bank, Axis Bank and Hindalco closed as top losers.

Aditya Gaggar, Director of Progressive Shares, said, “Bears struck back with full force and dominated today’s trade. Without any significant pullback, the index kept compounding its losses to end the session at 21,571.95 with a loss of 460.35 points. Only the IT sector managed to end the day in green; and on the flip, BankNifty was the major laggard followed by Metal. A correction was seen in the Broader markets as well but Mid and Smallcaps managed to outperform the Frontline Index.”

Related Topics