Mumbai: The stock market remained weak and sluggish throughout the session and failed to recover till the closing hours. Heavy selling pressure dragged indices close to their day’s lows. IT and auto stocks saw the maximum selling, pulling Nifty below its important 20-day moving average, signalling short-term weakness.
The Sensex closed 367 points lower at 85,041.45, while the Nifty fell 99.80 points to end at 26,042. During intraday trade, the break below the 20-DMA raised technical concerns. The overall mood remained cautious as selling intensified after 12 noon.
Midcaps and Banks Also Feel the Heat
Midcap and banking stocks also faced pressure. The Midcap Index slipped 137 points to close at 60,314, while Nifty Bank fell 172 points to 59,011. On the NSE, the advance-decline ratio stood at 1:2, meaning declining stocks outnumbered gainers by a wide margin.
IT and Auto Stocks Lead the Fall
IT and auto stocks were the weakest performers. The Nifty IT index ended in the red for the third straight session. Coforge dropped nearly 4 percent amid concerns ahead of a fund-raising meeting and talks of a possible acquisition. Weakness in these sectors weighed heavily on overall market sentiment.
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Despite the weak market, railway stocks showed strong buying interest after new train fares came into effect. RVNL surged over 12 percent, becoming one of the biggest gainers of the day. Metal stocks remained firm, with Hindustan Copper rising for the sixth straight session. Hindustan Zinc also stayed strong amid rising metal prices.
Titan gained nearly 2 percent after announcing the launch of a lab-grown diamond store. Panacea Biotec jumped 13 percent on higher UNICEF order value. Castrol ended higher after news related to its open offer price provided support.
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The first major reason was weakness in the rupee, which fell 23 paise to 89.94 against the dollar due to foreign fund outflows and rising crude oil prices. Secondly, foreign institutional investors sold shares worth nearly Rs 1,721 crore, marking the third straight session of net selling.
Third, crude oil prices rose globally due to supply concerns, adding pressure on Indian markets. Lastly, profit booking was seen across sectors as investors turned cautious with only a few trading days left in the year.
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Experts believe Nifty faces resistance near 26,100, and further weakness could drag it towards 25,850. However, a move above 26,325 may revive short-term optimism.
