Indian equity markets opened on a negative note on July 25, 2024, reflecting a bearish sentiment influenced by global market trends. The BSE Sensex fell by 600 points to settle at 79,542, while the Nifty50 index dropped by 183 points, reaching 24,230. This decline comes in the wake of a significant sell-off in international markets, particularly in the United States, where major indices experienced substantial losses.
Global Market Influence
The downturn in Indian markets was largely driven by a global sell-off. The NASDAQ Composite plunged 3.6% following disappointing earnings reports from major companies like Tesla and Google, while the S&P 500 and Dow Jones also reported declines of 2.3% and 1.3%, respectively. Asian markets mirrored this trend, with Japan’s Nikkei dropping 2.7% and South Korea’s Kospi falling 1.9%.
Sector Performance
On the BSE, Axis Bank was the biggest loser, with shares down by 5%. Other significant decliners included Tata Steel, Power Grid, and ICICI Bank. In contrast, few stocks managed to register gains, including L&T, Tata Motors, and Nestle India, indicating a selective performance in the market.The broader market indices also reflected this weakness, with the MidCap index declining by 0.67% and the SmallCap index falling by 0.16%. This indicates that the negative sentiment was pervasive across various segments of the market, affecting both large-cap and mid/small-cap stocks alike.
Market Outlook
Market analysts are closely monitoring the levels of support and resistance for the Nifty50 index. Anil Singhvi, Managing Editor at Zee Business, noted that immediate support for the Nifty50 is expected at the 24,150-24,300 range, with a stronger support zone at 24,000-24,100. If the index fails to hold these levels, it could signal further downside potential.Rajesh Bhosale, an equity technical analyst, emphasized the importance of the 24,300 level. He indicated that sustaining below this level could lead to a bearish outlook, while a recovery above 24,550 would be necessary to regain upward momentum. As of the opening bell, the market sentiment remains cautious, with investors advised to adopt a sell-on-rise strategy in light of the current volatility.
Investor Sentiment
The sell-off in global markets has left investors in a state of uncertainty. Foreign institutional investors (FIIs) were net sellers of stocks worth ₹5,130.90 crore in the cash market on July 24, while domestic institutional investors (DIIs) bought shares worth ₹3,137.30 crore, indicating a mixed sentiment among different investor groups.
Conclusion
As the trading session progresses, market participants will be keenly observing any developments that could influence market direction. The focus will remain on key economic indicators and corporate earnings reports that could provide further clarity on the market’s trajectory in the coming days. The overall sentiment remains cautious, with traders advised to stay alert to market movements and adjust their strategies accordingly.
