Indian Stock Market Declines as Profit-Taking Follows Week-Long Bull Run
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Synopsis
On April 24, the Indian stock market closed lower, with investors taking profits after a strong seven-day bull run. The decline was influenced by geopolitical concerns and the expiry of April derivatives contracts. The Sensex fell by 315 points, while the Nifty dropped 82 points, although both indices had notable gains in the April series.
Key Takeaways
- Indian stock market experiences a decline.
- Profit booking follows a strong bull run.
- Pahalgam terror attack impacts market sentiment.
- Healthcare stocks perform well amidst selling pressure in other sectors.
- Investors advised to focus on stock selection.
Mumbai, April 24 (NationPress) The Indian stock market closed in the negative territory on Thursday, as investors engaged in profit-taking after a vigorous seven-day bull run.
Market sentiments were further dampened by the recent Pahalgam terror attack, along with the expiration of April derivatives contracts on the National Stock Exchange (NSE).
The Sensex commenced trading slightly lower at 80,058 and briefly peaked at 80,174 during early trading hours. However, persistent selling pressure led to a decline throughout the day.
It reached an intra-day low of 79,725 before concluding at 79,801, marking a drop of 315 points. Consequently, the Sensex ended its seven-day winning streak, during which it had surged by 6,269 points.
The Nifty index exhibited a similar trend, fluctuating within a tight range of 131 points, oscillating between a high of 24,348 and a low of 24,216.
Ultimately, the Nifty closed at 24,247, down 82 points. Despite Thursday’s decline, the Nifty recorded a gain of 656 points, or 2.8 percent, in the April futures and options series.
"Markets remained subdued, trading within a narrow range on the monthly expiry day of the April derivatives contracts, and ended slightly lower,” stated Ajit Mishra, SVP of Research at Religare Broking Ltd.
He added that this consolidation phase within the index aligns with expectations and may persist in the upcoming sessions.
“Therefore, we advise maintaining a focus on stock selection and utilizing market dips as buying opportunities,” Mishra mentioned.
Among the notable losers, Hindustan Unilever dropped by 4 percent after reporting a slight decrease in its March quarter net profit.
Bharti Airtel, ICICI Bank, and Eternal (Zomato) also finished 1-2 percent lower. Conversely, IndusInd Bank emerged as the top gainer, rising over 3 percent. UltraTech Cement, Tata Motors, and Titan also concluded in the green.
In the broader market, the BSE MidCap index decreased by 0.2 percent, while the SmallCap index remained unchanged.
Sector-wise, FMCG stocks faced pressure, with the BSE FMCG index declining by 0.8 percent. Realty stocks also struggled, dragging the sectoral index down by 1.4 percent.
Banking stocks experienced slight selling, with the BSE Bankex losing 0.4 percent. However, healthcare stocks attracted buying interest, and the index finished 0.6 percent higher.
Cement stocks stood out as top performers in Thursday’s trading session. Market experts believe profit-taking was anticipated after the recent robust rally, and geopolitical concerns have contributed to the market's anxiety.
“Investors will now shift their focus to upcoming earnings and global cues for further direction,” analysts observed.
