Market experienced significant turbulence on Thursday, with benchmark indices Sensex and Nifty closing lower amid a dramatic selloff triggered by the U.S. Department of Justice’s indictment of Adani Group chairman Gautam Adani.

The Sensex closed at 77,155.79, down 422.59 points or 0.54 per cent, while the Nifty 50 declined 168.60 points or 0.72 per cent to 23,349.90.

The market’s downturn was multifaceted, driven by escalating geopolitical tensions and the sudden legal challenges facing the Adani Group.

Adani Group stocks were particularly hammered, with multiple companies experiencing steep declines that sent shockwaves through the market. Adani Enterprises plummeted 23.44 per cent, while Adani Energy Solutions dropped 20 per cent, and Adani Ports & SEZ fell 13.23 per cent.

“The domestic market faced renewed pressure due to escalating tensions in the Russia-Ukraine conflict and heightened nuclear concerns. Additionally, the fresh Adani case with the US DoJ added to the market’s woes,” said Vinod Nair, Head of Research at Geojit Financial Services. The market sentiment was further complicated by ongoing Foreign Institutional Investor (FII) selling and global market uncertainties.

The NIFTY NEXT 50 dropped 1.49 per cent, while the NIFTY MIDCAP SELECT dipped a marginal 0.06 per cent. The NIFTY BANK fell 0.50 per cent, and the NIFTY FINANCIAL SERVICES declined 0.55 per cent, reflecting cautious investor sentiment across key sectors.

Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd highlighted critical technical supports at 23,300 (50-Weekly SMA) and 23,200 (short-term trend line), suggesting a potential relief rally if these levels hold.

Prashanth Tapse, Senior VP at Mehta Equities, provided additional context, noting, “While the market is in the midst of a bear hug for the past few weeks, today’s fall can also be attributed to the news of Adani group facing bribery charges which triggered a massive sell-off in its group stocks.”

Despite the overall negative sentiment, some sectors and stocks demonstrated resilience. Power Grid emerged as a top gainer, rising 3.25 per cent, followed by Ultratech with a 1.70 per cent increase. Other notable performers included Hindalco (1.20 per cent), Apollo Hospitals (0.88 per cent), and Grasim (0.88 per cent).

The market’s breadth revealed the extent of the downturn. Of the 4,065 stocks traded on the BSE, 2,737 declined while only 1,235 advanced. The day saw 165 stocks hitting 52-week highs and 184 touching 52-week lows, with 291 stocks in the upper circuit and 378 in the lower circuit.

One bright spot was One 97 Communications (Paytm), which rose 3 per cent after launching UPI International, enabling transactions in six foreign countries including Singapore, France, UAE, Mauritius, Bhutan, and Nepal.

Shrikant Chouhan from Kotak Securities offered a technical perspective on the market’s performance. “Technically, on daily charts the index has formed a bearish candle and it also holds a lower top formation, which is largely negative,” he explained. Chouhan suggested there might be a potential for a quick pullback if the Nifty crosses 23,400 and Sensex moves above 77,300.

Ameya Ranadive, Senior Technical Analyst at StoxBox, highlighted the broader context, stating that the market was “influenced by weak global sentiment amid rising tensions in Russia and as investors evaluated Nvidia’s quarterly results.”

The day’s trading session underscored the volatile nature of the current market, with geopolitical tensions, legal challenges, and global economic uncertainties continuing to play crucial roles in investor sentiment and market movements.

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