NIFTY below 22,150, SENSEX drops over 450 points: Why are markets bearish?

Domestic markets closed lower for the third consecutive trading session after escalating tensions in the Middle East, heightened outflows of foreign funds and high US treasury yields hampered investors sentiments.

In the last three trading sessions, NIFTY50 is down more than 600 points, while SENSEX has lost over 2,000 points. Meanwhile, NIFTY Bank declined 1500 points to close below 48,000 level.

NIFTY50 closed at 22,147, down 0.56%, while SENSEX closed at 72,943, declining more than 450 points. Sell-off in IT giants like Infosys (-3.61%) and TCS (-1.66%) and Wipro (-2.25%) along with sell pressure in IndusInd Bank (-2.97%) and ICICI Bank (-0.89%) dragged down overall markets.

As per experts, markets are witnessing selling pressure amid escalating tensions in the Iran-Israel conflict in Gaza, stoking unease in the Middle East region. The tension has exacerbated selling patterns across bourses, with Hang Seng Index closing 2.12% lower today and US- Dow Jones Index closed -0.65% lower on Monday. Heightened uncertainty combined with rising US dollar rates and US Treasury yields has further hurt the market sentiment.

Besides this, weaker rupee and crude oil prices touching a 6-month high in domestic and international markets has also dragged markets lower. Consistent sell-off by Foreign Institutional Investors (FIIs), which offloaded equities worth ₹3,268 crore on Monday is also another reason for selling pressure in the domestic markets.

Out of the NIFTY50 space, 34 stocks closed in red. Infosys (-3.61%), LTI Mindtree (-3.05%), IndusInd Bank (-2.97%) are among top losers, while Eicher Motors (+3.05%), Hindustan Unilever (+1.65%), ONGC (+1.55%) are top gainers.

On the sectoral front, NIFTY IT (-2.58%), NIFTY PSU Bank (-1.27%) lead the sectoral losses. NIFTY Media (+1.57%) and Oil and Gas (+0.60%) are among gainers. Meanwhile, broader market indices closed mixed with NIFTY Midcap100 and Smallcap100 closing -0.09% lower and +0.75% higher respectively.

In top stock movers today, Cipla Health, the consumer healthcare unit of Cipla, signed a business transfer agreement for purchase of the distribution and marketing business undertaking cosmetics and personal care business of Ivia Beaute, India. As on the closing date, the cost of acquisition stands at ₹130 crore as on the closing date. Read More

Jio Financial Services, a subsidiary of Reliance Industries, has decided to foray into the broking and wealth management business through a 50:50 joint venture (JV) with global asset management firm BlackRock. Read More

Vodafone Idea shares fell as much as 4% during the session as the mobile network operator looks at ₹18,000-crore FPO launch on April 18. The stock closed 1.90% lower after recouping intraday losses at ₹12.90 on the NSE. Its follow-on public offer will close on April 22. Read More

Manappuram Finance is exploring the possibility of raising $500 million through external commercial borrowings (ECBs), which includes US dollar bonds. Specific terms and conditions of the proposed ECB offering will be decided by the company’s board later. Read More