Sensex plunges over 800 points: What's behind today's market crash
The Indian stock market took a major hit on Tuesday, with the Sensex and Nifty indices opening in the red. The Sensex fell by 830 points or 1% to 80,918 while the Nifty fell by 254 points to 24,414 during morning trade. The fall was mainly led by financials and oil & gas stocks as investors stayed cautious ahead of the US Federal Reserve's crucial meeting on December 17-18.
Market volatility surges, major stocks contribute to decline
The India VIX, a measure of market volatility, jumped nearly 6% to 14.8, reflecting increasing uncertainty in the market. Major stocks including HDFC Bank, Reliance Industries (RIL) and ICICI Bank together contributed over 80 points to the Nifty's fall. HDFC Bank shares dropped by 0.8% after SEBI issued a warning letter over non-compliant disclosures related to a senior employee's resignation.
Analyst predicts lackluster market performance, potential RBI rate cut
"The market is going to be lackluster as most of the fund players are on leave on account of the Holiday season and I think it will remain this way till the end of December," said Vinit Bolinjkar, Head of Research at Ventura Securities. He added declining inflation in India could lead to a potential rate cut by RBI if positive data continues.
Financial services sector under pressure, Nifty Media defies downturn
The financial services sector came under pressure with HDFC Bank, ICICI Bank and Shriram Finance slipping between 0.5-2.5%. The Nifty Oil & Gas index also fell by 0.4% due to declines in RIL, ONGC and BPCL shares. Despite the broader market slump, Nifty Media gained over 1% propelled by gains in PVR Inox, Zee Entertainment and Nazara Technologies. Piramal Pharma surged nearly 3% after JM Financial started coverage with a 'Buy' call.
Technical analysis suggests resistance levels for Nifty
On the technical front, Hardik Matalia from Choice Broking identified resistance levels for Nifty at 24,800 and 25,000 with immediate support at 24,550 and critical support at 24,400. He advised traders to adopt a "buy-on-dips strategy" while maintaining a strict stop-loss at 24,200 on a closing basis. This advice comes as investors navigate through market volatility and uncertainty ahead of key policy decisions.
