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  4. NIFTY below 22,600, SENSEX drops around 800 points; why markets fell today

NIFTY below 22,600, SENSEX drops around 800 points; why markets fell today

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Upstox

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3 min read • Updated: April 12, 2024, 4:44 PM

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Summary

NIFTY50 closed 1.03% lower at 22,519.40, while SENSEX settled at 74,244.90, declining nearly 800 points or 1.06%. The sell-off in banking heavyweights like HDFC Bank (-1.3%), ICICI Bank (-0.58%) and Kotak Bank (-0.7%) dragged down the overall markets.

NIFTY below 22,600, SENSEX drops around 800 points; why markets fell today
As per experts, weakness in the domestic market comes amid weak global clues, especially in the US markets.

Benchmark indices were under heavy selling pressure today, with NIFTY50 and SENSEX falling more than 1% each after scaling all-time highs earlier this week. The NIFTY50 closed below 22,600, while the SENSEX declined nearly 800 points.

As per experts, weakness in the domestic market comes amid dour global cues, especially in the US markets. Retail inflation in the US rose for the second straight month to 3.5% in March 2024, dampening expectations of interest rate cuts in the near future. On the global stage, investors are also expecting quarterly results from some of the biggest banks in the US, including JP Morgan, Wells Fargo and Citigroup.

In the domestic market, investors were keenly looking at Tata Consultancy Services' fourth-quarter results after Accenture Plc lowered its full-year expectations based on a bleak outlook. Shares of the company closed in the green at ₹4,003, up 0.48% on NSE.

TCS Q4 results, which came after markets closed, showed that the IT giant’s net profit grew 12.5% quarter on quarter (QoQ) to ₹12,502 crore, while its revenue edged higher by a modest 1.5% to ₹62,394 crore. Read more here: Tata Consultancy Services' Q4 Results

Besides this, rising US bond yield and crude oil prices, with Brent crude oil trading near $91 per barrel, remained other key concerns.

Out of the NIFTY50 space, 45 stocks closed in the red. Sun Pharma (-3.6%), Maruti (-3.2%), and Powergrid (-2.5%) were among the top losers, while Bajaj Auto (+0.7%), Divi’s Lab (+0.8%) and Tata Motors (+0.6%) were the top gainers.

All sectoral indices ended lower today, with NIFTY Healthcare (-1.45%), PSU Bank (-1.26%), and Oil and Gas (-1.23%) among the top losers.

Earlier in the day, the Asian Development Bank (ADB) raised India's GDP growth forecast for the current fiscal year to 7% from 6.7% earlier, amid expectations of robust growth driven by public and private sector investment demand and gradual improvement in consumer demand.

Sun Pharma (-3.6%) shares declined more than 4% intraday after the USFDA issued an Official Action Indicated (OAI) status for the company’s Dadra facility. The OAI status by the United States Food and Drug Administration (USFDA) signifies that regulatory or administrative actions have been advised. Read more here: Sun Pharma shares drop over 3%

Vodafone Idea shares slipped 4.2% intraday the telecom operator said it plans to raise ₹18,000 crore through a follow-on public offer (FPO) with a price band of ₹10 to ₹11 per equity share. However, they recouped the losses to close 1.5% higher for the day. Read more here: Vodafone Idea to launch ₹18,000 crore FPO on April 18

Bharti Hexacom made a stellar debut today, with its shares listing at a premium of 32.4% at ₹755 per share against the issue price of ₹570 on the NSE and the BSE.
Read more here: Bharti Hexacom IPO listing