NIFTY50 drops over 200 points from its peak, registers sharpest single-day fall since election

At the opening bell, the NIFTY50 hit a high of 24,854.30 but has since been drifting lower. By the afternoon session, both the NIFTY50 and the SENSEX were trading near the day’s low on Friday. The NIFTY50 index is down over 200 points from its peak, marking its sharpest single-day fall since the election results. The NIFTY50 and SENSEX were down by 0.65% and 0.45%, respectively.

Index heavyweight Reliance Industries has been a major drag ahead of its earnings report, followed by Bharti Airtel and Tata Motors. Additionally, the India VIX has spiked 1.50%, reaching a level of 14.71.

The Nifty Bank is down by over 300 points, but despite a sharp fall, it remains above its prior day low, though it is trading below the 20-day moving average (20-DMA), which stands at 52,455.

The majority of the sectoral indices were seen trading in red, with the exception of Nifty IT (+0.23%) and Nifty FMCG (+0.05%). Nifty Metal (-3.47%) and Nifty Realty (-3.26%) were the top losers, with the Nifty Metal index hitting a fresh one-month low and trading below the 20-DMA. This steep decline in the Nifty Metal index has been the sharpest since the election outcome, driven by substantial losses in copper prices. Although copper prices steadied on Friday, they are significantly down for the week due to growing concerns over the Chinese economy. Additionally, reports of potential stricter trade restrictions from the US against China have amplified these tensions.

The broader markets are experiencing a sharp sell-off, with Nifty Midcap 100 and Smallcap 100 indices registering their steepest decline since June 4, each down by 2Market breadth is extremely weak, with 2021 stocks declining and only 282 advancing.