Sensex Tanks Over 900 Points, Nifty Slides Below 23,800 As Ceasefire Optimism Fades and Banks Drag

Mumbai, April 9: Benchmark indices ended lower on Thursday, reversing a large part of the previous session’s rally, as fading optimism around the US-Iran ceasefire and renewed geopolitical concerns triggered broad-based selling across sectors.

The BSE Sensex fell1.20% or around 931 points to 76,631.65, while the Nifty 50 slipped below the 23,800 mark, down 0.93%, dragged primarily by banking and financial stocks. About 2,054 shares advanced, 2,046 shares declined, and 126 shares remained unchanged.

Markets opened weak, tracking negative global cues, and extended losses through the day as sentiment deteriorated amid uncertainty over the durability of the ceasefire in West Asia. Investors turned cautious after the previous session’s sharp rally, which had been fuelled by hopes of easing geopolitical tensions.

Banking bashed

Banking stocks bore the brunt of the sell-off, with heavyweights witnessing notable declines. The broader financial pack remained under pressure, pulling the indices lower, even as select metal stocks offered some support.

Sectorally, the banking index fell around 1.5 per cent, while private banks also saw sustained selling interest. Realty stocks, which had rallied sharply in the previous session, also corrected, indicating profit booking at higher levels.

Pockets of resilience

Despite the overall weakness, some pockets of the market showed resilience. Metal stocks and select defensives such as FMCG and IT provided limited support to the indices, with stocks like Hindalco, JSW Steel, and Tata Consultancy Services contributing positively on the Nifty.

In terms of percentage gains and losses on the sectoral front, oil & gas, PSU banks, auto, infra, consumer durables, media, and private banks shed 0.3-2%, while metals, power, pharma added 0.6-1%.

Market breadth remained slightly negative, with declining stocks outnumbering advancing ones on the exchanges, reflecting cautious undertones among investors. Mid- and small-cap stocks also saw mixed trends after the sharp surge seen in the previous session.

Profit Booking

Analysts said the sharp decline reflects a classic case of profit booking after a strong rally, compounded by fragile global cues. The uncertainty surrounding developments in the Middle East, particularly around the Strait of Hormuz and oil supply routes, has kept investors on edge.

Global cues also remained weak, with European markets trading lower and US futures indicating a subdued start, as fading ceasefire optimism dampened risk sentiment.

Experts believe that markets may remain volatile in the near term, with key triggers including geopolitical developments, crude oil price movements, and global central bank signals. The recent rally, driven largely by short covering rather than fresh buying, has also raised concerns about the sustainability of the uptrend.

Going ahead, traders are expected to remain cautious, with a “sell-on-rise” strategy likely to dominate in the absence of strong positive triggers, even as long-term outlook remains supported by domestic macro fundamentals.

Source: 

• https://www.bseindia.com/
• https://www.nseindia.com/