On Friday, the Indian stock market witnessed significant volatility, with 58 stocks reaching their 52-week highs, including prominent names like UltraTech Cement Ltd, Coromandel International Ltd, and Dalmia Bharat Ltd. In stark contrast, 40 stocks hit their 52-week lows, featuring companies such as Jai Balaji Industries Ltd and Hilton Metal Forging Ltd. The market’s overall performance took a downward turn, largely influenced by escalating geopolitical tensions and mixed corporate earnings reports.
Market Decline Driven by Geopolitical Tensions
The Sensex plummeted by 588 points (0.74%), closing at 79,212, while the Nifty 50 dropped 207 points (0.86%), nearing the 24,039 mark. The significant selling pressure can be attributed to the rising tensions between India and Pakistan, exacerbated by the recent Pahalgam terror attack. This incident led to retaliatory measures along the Line of Control and resulted in India’s suspension of the Indus Water Treaty, creating unease among investors.
- 58 stocks reached 52-week highs
- 40 stocks hit 52-week lows
- Sensex fell 588 points to 79,212
- Nifty 50 decreased by 207 points to 24,039
Impact on Small and Midcap Stocks
During the trading session, small and midcap stocks bore the brunt of the market’s downturn. The BSE Small Cap and Midcap indices reflected a significant decline, raising concerns regarding high valuations in these sectors. However, the IT sector showed some resilience amidst the broader market decline.
Weekly Market Performance
Despite the recent setbacks, the stock market experienced an overall increase of nearly 1% this week, marking a second consecutive week of growth prior to the last two days’ downturns. The Nifty Bank recorded a 0.7% rise, while the Midcap index surged nearly 2% over the week.
Nifty 50 Technical Outlook
Rupak De, a Senior Technical Analyst at LKP Securities, noted an increase in bearish sentiment as the Nifty 50 slipped after a period of consolidation on the daily chart. With the index falling below its 200-day moving average, the market could be entering a more bearish phase. The prevailing investor sentiment appears cautious, particularly with the heightened geopolitical risk approaching the weekend.
- Bearish sentiment observed in Nifty 50
- Support levels identified at 23,800 and 23,515
In summary, the Indian stock market is facing challenges from geopolitical developments and fluctuating investor confidence. As the situation evolves, market participants are advised to keep a close eye on geopolitical events and their potential impacts on stock performance.
