Sensex, Nifty Resume Declines After Two-Day Rally, Cipla Share Price Falls: Market Wrap

The Nifty 50 and Sensex indexes saw a downturn on recent trading, following a brief two-day rally. Cipla's stock price dropped significantly by over 4%, reflecting rising concerns in the market.

The Nifty 50 closed down by 126.00 points, or 0.51%, settling at 24,340.85. The Sensex finished at 79,942.18, marking a decline of 426.85 points or 0.53%. This retracement was largely influenced by increased market volatility as shares from prominent firms like Infosys and ICICI Bank experienced losses.

The India Volatility Index (VIX) rose to its highest level since mid-August, ending the day at 15.70, marking an increase of 8.16%. Meanwhile, declines in other Asian stock indices and European markets added further pressure on Indian benchmarks, as investors globally awaited upcoming Gross Domestic Product (GDP) data from Europe and the United States.

Intraday, the Nifty 50 had dipped by as much as 0.65% to 24,307.30, while the Sensex fell to 79,821.99, down 0.68% at its lowest point. The overall performance highlighted mixed sentiments among investors.

Cipla's recent drop in share price was attributed to analysts revising their target prices downward, citing weaker-than-expected performance in its domestic business alongside challenges faced in its major product lines.

Technically speaking, market analysts noted that the Nifty and Sensex had formed small candlesticks on daily charts, indicating indecisiveness between bullish and bearish sentiments. Shrikant Chouhan from Kotak Securities suggested a range-bound activity in the market, advising a strategy of buying on dips and selling on rallies for traders.

Key support levels were identified at 24,250-24,200 for the Nifty and 79,700-79,500 for the Sensex. Conversely, resistance areas were set at 24,500-24,550 and 80,400-80,600, respectively. A breach of 24,200 or 79,500 could signal a vulnerability in the upward trend.

The Nifty Bank index also faced a downturn, falling 0.90% to close at 51,850.00. On the flip side, shares of ITC Ltd., Maruti Suzuki India Ltd., Larsen & Toubro Ltd., Adani Enterprises Ltd., and Hero MotoCorp Ltd. helped cushion the fall in the Nifty.

However, heavyweights such as Infosys, ICICI Bank, HDFC Bank, Axis Bank, and Mahindra & Mahindra weighed down the index considerably.

In terms of market sector performance, out of 12 segments in the NSE, eight ended lower while three advanced and one remained unchanged. The Nifty Finance sector suffered the steepest decline, while the Nifty Media sector saw the biggest gains.

Despite these challenges, broader indices performed relatively well, with BSE Midcap ending flat and BSE Smallcap closing 1.5% higher. On the BSE, four out of 20 sectoral indices decreased, while 16 advanced, with the BSE Services index leading the gains.

The market breadth showed a positive skew, as 2,892 stocks moved upward, while only 1,040 experienced declines with 79 remaining unchanged.

Market, Stocks, Decline