Sensex slides 715 points, Nifty ends below 24,000 as realty, PSU banks drag markets
Mumbai, July 22
Domestic equity markets ended sharply lower on Tuesday, extending losses for a third straight trading session, as selling pressure in realty and PSU banking stocks, along with rising crude oil prices amid tensions in West Asia, weighed on investor sentiment.
The Sensex declined 715.06 points, or 0.92 per cent, to close at 76,755.05, while the Nifty fell 191.45 points, or 0.79 per cent, to settle at 23,996.25, slipping below the psychologically important 24,000 level.
Commenting on Nifty technical outlook, experts said that the 24,200 level has now emerged as the crucial resistance for the coming sessions.
"A sustained move above this level will be essential to revive bullish momentum and improve the near-term technical structure," an analyst stated.
"On the downside, A decisive break below the 24,000 psychological mark remains the most critical level could trigger fresh selling pressure and drag the index towards the 23,900-23,800 support zone," a market expert mentioned.
Market participants remained cautious as geopolitical concerns in West Asia pushed crude oil prices higher, raising fears over inflationary pressures and their potential impact on the domestic economy.
Among the Nifty constituents, InterGlobe Aviation, Dr. Reddy's Laboratories and Jio Financial Services emerged as the top losers.
The weakness was even more pronounced in the broader markets. The Nifty MidCap index ended 1.09 per cent lower, while the Nifty SmallCap index dropped 1.54 per cent.
Sectorally, realty stocks led the decline, with the Nifty Realty index falling 2.6 per cent. The Nifty Media index also slipped 2.6 per cent, while information technology, pharmaceutical and private banking stocks witnessed losses of around 1 per cent each.
"While several companies reported stronger-than-expected results, including robust earnings from leading automakers, investor attention remained firmly on the macro backdrop as higher crude oil prices and renewed concerns over potential U.S. tariffs on pharmaceutical imports weighed on sentiment," analysts said.
— IANS
Reader Comments
Genuinely worried about my mutual fund SIPs. I know we're supposed to stay invested for the long term, but seeing red every day is painful. My colleagues in realty sector are panicking too - Nifty Realty down 2.6% is no joke. Hopefully this is just short-term noise due to geopolitics.
Honestly, the analysts are just recycling the same old lines. "24,200 is resistance, 23,800 is support" - kuch naya batao yaar! The real story here is how PSU banks are getting hammered despite decent results. Market doesn't care about earnings right now, it's all about crude and global cues. Frustrating times for active traders ♂️
My father always says "jab tak petrol sasta nahi hoga, market nahi chadhega" - and with West Asia tensions, crude isn't going down soon. Also, these US tariff threats on pharma exports are worrying. India's pharma sector is already under margin pressure. Hope Dr. Reddy's and others recover soon.
Correction is healthy! I've been waiting for an opportunity to enter good stocks at lower levels. Midcaps and smallcaps falling more than largecaps is a signal that froth is being removed. But yes, psychological impact of Nifty below 24,000 can trigger stop-losses - that's what the article rightly points out. Stay cautious, avoid margin trading!
As an NRI watching Indian markets from the UK, this third consecutive day of decline
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