Sensex slides 1,854 pts, Nifty drops 2% in 5 sessions; what’s next for stock market?

Domestic equity benchmarks extended their losing streak to a fifth straight session on Thursday, with Sensex and Nifty ending in the red as investor sentiment remained cautious. Persistent foreign outflows and concerns over higher H-1B visa fees further dampened market mood.

At the closing bell, the Sensex fell 555.95 points, or 0.68 per cent, to end at 81,159.68, extending its five-day slide to nearly 1,854 points. The Nifty50 slipped 166.05 points, or 0.66 per cent, to close at 24,890.85, marking a 2% drop over the past five sessions.

Rupak De, Senior Technical Analyst at LKP Securities, said the 50-pack index has fallen below the crucial support level of 25,050, which also coincides with the 38.20 per cent Fibonacci retracement of the previous rise from 24,400 to 25,450. 

“Additionally, the index has slipped below the 21 EMA on the daily timeframe, confirming increasing bearish sentiment,” De said.

“It appears that the bulls are stepping back, giving bears more control over the market. On the downside, immediate support is placed at 24,800; a break below this level could trigger a deeper and more serious correction. On the upside, resistance is seen at 25,000," De added.

Trent led the losers on the Sensex, slipping 3.58 per cent to Rs 4722.15. Power Grid dropped 3.05 per cent, while Tata Motors, TCS, Asian Paints, and NTPC declined 2.73 per cent, 2.53 per cent, 2.15 per cent and 2.07 per cent, respectively.

Five stocks namely, TCS, Reliance Industries, ICICI Bank, Bajaj Finance and Power Grid, contributed heavily to the Sensex’s decline. 

Among sectoral indices, the BSE IT index declined 1.10 per cent to 34,149.55, while the BSE Auto index dropped 0.93 per cent to end at 59,819.56.

Within the BSE Sensex pack, TCS touched a fresh 52-week low of Rs 2,951.

Overall, out of the 4,319 active stocks traded on the BSE, 1,478 closed with gains, while 2,700 ended in red and 141 remained unchanged. During the session, 137 stocks touched their 52-week highs, while 94 slipped to their 52-week lows. Meanwhile, 239 stocks were locked in their upper circuits, and 182 hit their lower circuits.

Vinod Nair, Head of Research at Geojit Investments Limited, said Indian markets extended their losing streak to a fifth consecutive session as investors booked profits amid persistent FII outflows and uncertainty over US-India trade talks, which could weigh on Q2 GDP growth.

“Broad based selling prevailed in the market with heavy selling across auto, IT, pharma, and healthcare sectors, while metals gained on the back of China’s liquidity support and copper supply concerns. Overall, sentiment remains cautious ahead of India’s H2FY26 borrowing and US macroeconomic data, expected to be released over the end of the week," Nair said.