Sensex tumbles 2,171 pts, Nifty falls over 2% in 2 days; will stock market extend losses?

Domestic equity benchmarks BSE Sensex and NSE Nifty continued their downtrend for the second straight session on Thursday amid escalated war between Iran and the US-Israel, as the West Asia conflict and rising crude oil prices weigh on sentiment.

At close, the Sensex declined 829.29 points, or 1.08 per cent, to settle at 76,034.42, taking its two-day decline to 2,171.56 points. While the Nifty slipped 227.70 points, or 0.95 per cent, to close at 23,639.15, it slipped 2.56% in two sessions. 

“Over the past month, the Nifty has fallen more than 2,200 points, or over 8%, highlighting the sustained impact of geopolitical uncertainty and elevated crude prices on investor sentiment,” said Hariprasad K, SEBI-registered research analyst and founder, Livelong Wealth.

Investors’ wealth eroded by over Rs 6 lakh crore over the past two sessions as the combined market capitalisation of BSE-listed companies declined to Rs 440.15 lakh crore, down from Rs 446.70 lakh crore on Tuesday.

A key driver of the weakness is crude oil's renewed surge above $100 per barrel, which poses a direct challenge to India given its reliance on energy imports, Hariprasad said.

Top gainers & losers

Among Sensex constituents, Mahindra & Mahindra (M&M) emerged as the top loser, declining 4.23% to Rs 3,032.80. Maruti Suzuki followed with a 3.60% fall, while Bajaj Finance, Larsen & Toubro (L&T), UltraTech Cement and Trent slipped 3.31%, 3.06%, 2.90% and 2.46%, respectively. 

While NTPC, Power Grid Corporation of India and Tech Mahindra among top gainers on the Sensex, they rose up to 2.79% today.

Five stocks, namely ICICI Bank, L&T, M&M, Bajaj Finance and Axis Bank, contributed largely to the Sensex’s decline.  

Among sectoral indices, the BSE Auto index tanked 2.92% to close at 55,697.60, while the BSE FMCG index declined 1.63% to settle at 17,707.07.

In the 30-pack index, shares of HDFC Bank, Infosys, Kotak Mahindra Bank, Tata Consultancy Services (TCS) and Trent hit their 52-week lows

The 50-pack index ended the session with a negative technical bias after facing rejection near the 23,750–23,850 resistance zone, indicating weak buying interest at higher levels, said Ponmudi R, CEO of Enrich Money.

Market breadth turned negative on BSE. Of the 4,404 actively traded stocks, 1,714 ended in the green, while a dominant 2,514 declined and 176 settled unchanged. The session saw 68 stocks scaling fresh 52-week highs, compared with 378 counters sliding to new 52-week lows. In addition, 162 scrips were locked at their upper circuits, whereas 177 hit lower circuit limits.

“The Nifty 50 ended the session with a negative technical bias after facing rejection near the 23,750–23,850 resistance zone, failing to sustain above the consolidation range. Price action continued to form lower highs, reflecting persistent supply at higher levels and weak buying participation. The breakdown eventually pushed the index toward the 23,600 region by the closing bell, confirming a short-term bearish structure in the market,” Ponmudi said.

He added that “While cumulative Put OI additions remained relatively high, significant put unwinding was visible above the 23,800 strike, suggesting that traders were trimming bullish positions at higher levels. This reduced support strength at upper strikes and added to selling pressure. At the same time, fresh call OI build-up around the 23,750–23,800 zone reinforces it as a key near-term resistance band.”

According to Ponmudi, 23,550–23,400 remains a crucial support zone for the index in the near term.

Ajit Mishra – SVP, Research, Religare Broking Ltd said, that, given the current uncertainty and negative market trend, participants should align their index positions with the broader market trend while keeping position sizes in check.

“Stocks, on the other hand, are offering opportunities on both sides. While sectors such as pharma and energy are holding firm, others continue to face pressure. Traders should therefore maintain a balanced approach and consider opportunities on both the long and short sides,” Mishra added.