Synopsis
On February 24, Mumbai's benchmark indices closed down over 1% amid widespread selling due to negative global cues. IT stocks were the most affected, while a few managed gains. The overall sentiment remains bearish as investors take profits after recent market rallies.Key Takeaways
- Sensex fell 856.65 points to 74,454.41.
- Nifty dropped 242.55 points to 22,553.35.
- IT stocks like Wipro and TCS suffered significant losses.
- Some stocks, including Nestle India, saw modest gains.
- The market sentiment remains bearish with profit booking.
Mumbai, Feb 24 (NationPress) On Monday, the domestic benchmark equity indices experienced a downturn, concluding the trading session with a decline of over 1 percent due to widespread selling pressure influenced by unfavorable global signals.
By the end of the day, the 30-share Sensex plummeted 856.65 points, or 1.14 percent, closing at 74,454.41. The index showed fluctuations between 74,907.04 and 74,387.44 during intraday trading.
In a similar vein, the Nifty also closed lower, down 242.55 points, or 1.06 percent, ending at 22,553.35 on the week's opening trading day. It reached a high of 22,668.05 and a low of 22,518.80 throughout the session.
The primary contributors to this decline were IT stocks, with companies such as Wipro, HCL Tech, TCS, Infosys, and Bharti Airtel being significantly impacted, experiencing losses of up to 3.7 percent.
Market analysts suggest that persistent global challenges continue to affect the domestic market, with ongoing volatility inducing uncertainty among retail investors, who typically exhibit lower risk tolerance. Weak consumer sentiment in the US and tariff-related concerns may exert additional pressure on export-driven sectors like IT.
Conversely, a handful of stocks managed to withstand the overall market decline.
Companies such as Mahindra & Mahindra, Dr Reddy’s Labs, Eicher Motors, Hero MotoCorp, and Nestle India were among the 12 Nifty stocks that experienced gains of up to 1.54 percent.
Top gainers on the BSE index included Happiest Minds Technologies, Data Patterns, JSW Holdings Limited, Orchid Pharma, and Vesuvius India.
The broader markets mirrored the negative trend, with the Nifty Smallcap100 and Nifty Midcap100 closing lower by 1.02 percent and 0.94 percent, respectively.
Sector-wise, all indices ended lower, with the exception of Auto and FMCG, which managed to maintain slight gains.
The overall market sentiment remained bearish, as investors opted to book profits following recent gains, as per reports.
Technically, the Nifty formed a red candle on the daily chart, signaling weakness, according to experts.
Additionally, the index breached the 22,700 support level and closed below it. Thus, 22,700-22,800 will act as a significant resistance zone moving forward, they added.
