Markets Dive: Nifty drops below 23,000, sensex slips 500+ points, small & midcaps fall 3%
The markets slipped into the red today, with the BSE Sensex falling over 500 points to 75,709.08, and the Nifty dropping by more than 150 points, reaching 22,873.00. The broader markets saw even sharper declines, with the BSE Midcap and Smallcap indices tumbling nearly 3% each.
The trading day began on a positive note for domestic indices. The Sensex gained 200 points and opened at 76,340.73, while the Nifty held above 23,000. Early morning trading saw the Sensex at 76,407.53, up 283.52 points, and the Nifty 50 climbed 81.75 points to 23,113.15.
Tata Steel, ICICI Bank, HCL Tech, Maruti, and Tech Mahindra were among the major gainers on the Sensex. In contrast, Adani Enterprises, NTPC, Sun Pharma, Zomato, and PowerGrid saw the biggest losses.
The GIFT Nifty earlier indicated a positive start for domestic markets, with positive news from the Modi-Trump talks. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that the delay in reciprocal tariffs could benefit the markets. He also mentioned that India’s willingness to buy more oil and gas from the US could reduce the trade deficit. However, he warned that a sustained rally is unlikely unless foreign institutional investors (FIIs) turn into buyers, which could happen if the dollar and US bond yields decline.
Vijayakumar also noted the ongoing preference for large-cap stocks over mid and small caps, a trend that has continued with some small-cap mutual funds investing in mega-caps.
Thursday’s market performance had been similarly shaky. Both the Sensex and Nifty 50 extended their losing streak to a seventh consecutive session, marking the longest decline in three months. Despite early gains, both indices struggled to maintain momentum. The Sensex ended 32 points down at 76,138, while the Nifty 50 closed 13 points lower at 23,031. Although the midcap segment remained stable, small-cap stocks saw a decline of 0.4%.
In other market news, the gold rate showed a slight increase. 24-carat gold rose by Rs 10 to Rs 87,060 per 10 grams, while 22-carat gold climbed to Rs 79,810 per 10 grams. The price of 1 gram of 24-carat gold stood at Rs 8,706.
