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Indian Stock Market Drops 720 Points: Key Factors Explained

Indian stock market fell significantly due to financial sector pressure and trade deal uncertainties.

Indian Stock Market Plunges Over 720 Points

Mumbai: Indian equity benchmarks Sensex and Nifty50 closed lower on Friday. The Sensex fell 721 points to 81,463, while Nifty50 dropped 225 points to 24,837.

Financial stocks led the decline, with Bajaj Finance and Bajaj Finserv falling 4.7% and 2.3% respectively. Uncertainty over a US-India trade deal and continued FII selling also weighed on investor sentiment.

Market Capitalization:

  • BSE-listed companies’ market cap fell by Rs 6.5 lakh crore to Rs 451.6 lakh crore.

Key Reasons for Market Slide:

  1. Financial stocks under pressure after Bajaj Finance results.
  2. Uncertainty over US-India trade deal.
  3. Continued FII selling.
  4. Limited impact from India-UK Trade Pact.
  5. Weak global cues.

Sectoral Declines:

  • Nifty Auto index fell 1.3%.
  • Financial services, metal, PSU Bank, IT, and Oil & Gas sectors also declined.

Technical Indicators:

  • Nifty breached its 55-EMA and faces support at 24,800.
  • Immediate resistance at 25,250.

Experts believe the market may test 24,500 or even 24,000 levels in the near term.

By competitiveworld27

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