IT, financials, and realty stocks are among the top laggards on benchmark indices
Indian equity markets fell sharply on Thursday, driven by heavy selling pressure in technology, banking, and real estate stocks. The Nifty 50 index slipped 211.2 points to settle at 24,500.9, while the Sensex dropped 706 points to close at 80,080.6.
This was the second straight decline for the benchmark indices and the third drop in four sessions. The Nifty 50 index has slipped 1.9% over the past two days.
The markets came under selling pressure after the Donald Trump-imposed 50% tariff on Indian goods came into effect on Wednesday. On the monthly options expiry day, the Nifty slipped to a fresh three-month low, barely managing to hold the 24,500 level.
Retail investor sentiment surrounding the Nifty 50 index remained ‘bearish’ at market close on Stocktwits. It was ‘bullish’ earlier this week.
Stock Watch
Except for consumer durables, all sectoral indices ended in the red. The Nifty IT index fell 1.6%, while the realty index slipped 1.5%. Banking indices dropped 1% each, and the pharma index closed 0.83% lower.
Thirty-six stocks of the Nifty’s 50 stocks fell on Thursday, withn Shriram Finance (-3.94%), HCL Technologies (-2.85%), and Power Grid (-2.04%) ending as the top losers.
Interglobe Aviation declined 5.2% on reports of Rakesh Gangwal’s family selling up to a 3.1% stake through block deals worth ₹7,027 crore.
India extended the exemption on cotton import duty until Dec. 31, providing much-needed relief to the textile and garment sector, which has been reeling from steep U.S. tariffs.
Textile stocks were mixed at Thursday’s close. Shares of Welspun Living (-1.31%), Raymond (-2.05%), Ambika Cotton (-0.17%), Kitex Garments (-4%), and Vardhman Polytex (-1.24%) came under selling pressure, while Vardhman Textiles (11.5%), Arvind (+0.37%), Gokaldas Exports (+0.3%) and Nitin Spinners (+1.65%) closed higher.
Analysts Take
Nifty 50 rebounded to 24,630 before slipping back below 24,550, offering a quick scalping opportunity, once again proving effective even in an event-driven market, said SEBI-registered analyst Ashish Kyal.
Nifty has turned bearish after breaking below the relative strength index (RSI) of 40 on multiple timeframes, with FIIs continuing to weigh on sentiment, noted Sunil Kotak.
Key support lies at 24,200, which could be tested in the next six to seven sessions, while the bias remains negative below 24,500 – 24,550.
The 50% tariff delivers a significant setback for Indian exporters, with auto parts, textiles, jewelry, and seafood among the hardest hit. While electronics and pharma remain relatively insulated for now, risks persist, claimed Pradeep Carpenter.
To cushion the impact, India needs to diversify its export markets, accelerate free trade agreements, and push for exemptions through negotiations, Carpenter added.
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