Market Meltdown: Nifty Dips Below 24,700 as Sensex Plummets Over 900 Points; Midcaps Diverge

Domestic equity markets experienced a downturn on Tuesday following a robust trading session on Monday. After a notable rally on D-Street, market bulls took a moment to pause and reassess their positions.

Market Opening Trends

As trading commenced on Tuesday, the indices reflected a mixed sentiment. The NSE Nifty 50 began the day down by 12.40 points, or 0.05%, at 24,912. The index swiftly dropped more than 200 points or 0.84%, hovering around 24,700.

On the other hand, the BSE Sensex opened lower by 89 points, or 0.11%, starting at 82,340. It later fell over 800 points, or 1.09%, settling near 81,500.

The Bank Nifty started off down by 7.60 points at 55,375.25, while the Nifty Midcap 100 saw a slight uptick of 73 points, or 0.13%, opening at 55,489.40.

Insights from Market Analysts

“The Nifty surged by 3.8% yesterday, largely due to reduced tensions in the Indo-Pak conflict. This increase allowed the benchmark to confirm a bullish trend above the 200-day moving average, a signal historically associated with short-term gains. Current support is established between 24,650 and 24,700, with 25,000 acting as a critical psychological barrier,” noted Akshay Chinchalkar, Head of Research at Axis Securities.

Key Highlights from Tuesday’s Trading

Top Gainers:
- Sun Pharma
- Dr. Reddy’s Laboratories
- IndusInd Bank
- Bharat Electronics
- Hero MotoCorp
Notable Decliners:
- Infosys
- Wipro
- Hindalco
- Zomato
- Tata Steel

Currency Movements

In response to the recent ceasefire between India and Pakistan, the Indian rupee strengthened by 49 paise or 0.57%, reaching 85.89 against the US Dollar. Concurrently, the Dollar Index fell by 0.23%, settling at 101.56.

Global Market Overview

While the Indian markets faced a decline, several key Asian indices showed positive performance. Notably, Japan’s Nikkei 225, China’s Shanghai Composite, and Taiwan’s Taiwan Weighted were all trading higher. However, futures linked to the Dow Jones Industrial Average dipped by 0.25%.

Looking Ahead: Q4 Earnings

Investors are keenly awaiting a series of quarterly earnings reports set to be released today. Major companies such as Tata Motors, Hero MotoCorp, Bharti Airtel, Siemens, Bharti Hexacom, Aditya Birla Capital, Cipla, GAIL India, Suven Life Sciences, and VIP Industries will present their earnings updates on May 13.

As the market environment evolves, staying informed about these developments will be crucial for investors looking to navigate the current landscape effectively.