Sensex Crashes Over 1,000 Points Ahead of Key Economic Data; Nifty Also Dips Sharply

Indian equities witnessed a sharp decline this morning after gaining ground over the previous two sessions, as investors adopted a cautious stance ahead of key economic data releases.

The BSE Sensex, which tracks the top 30 companies by market capitalisation, plunged over 1,000 points and is currently trading below the 81,500 mark.

Photo Credit: PTI

Meanwhile, the Nifty index on the National Stock Exchange is down by 270 points from its last closing figure.

On Tuesday, the Sensex had risen by 455 points, with the Nifty gaining 148 points.

Markets opened on a weaker note today, weighed down by subdued trends in Asian markets and broad-based selling across IT, auto, financial services, and pharmaceutical stocks.

The Sensex opened 460 points in the red, while the Nifty slipped by 162 points - losses which deepened as trading progressed.

Within the Sensex constituents, IndusInd Bank, Asian Paints, and Adani Ports were among the few gainers, while stocks such as ITC, Mahindra & Mahindra, Axis Bank, and UltraTech Cement featured prominently among the top losers.

Market analysts believe that this bout of selling reflects investor caution ahead of crucial macroeconomic data.

Figures for industrial and manufacturing output for April are expected tomorrow, while first-quarter GDP numbers are likely to follow a day later.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, expressed hope that markets may consolidate around current levels in the short term.

According to Devarsh Vakil of HDFC Securities, the Nifty may find immediate support at 24,800 on the downside, with resistance seen near 25,205.

(With agency inputs)