Sensex Slips From 78,730 After 619-Point Jump, Nifty Rejects 24,400 Level, 5 Key Reasons Behind Market Turnaround

Mumbai: The stock market began Thursday on a strong note. The Sensex jumped 619 points to touch 78,730, while the Nifty hit an intraday high of 24,400.95.

However, the rally did not last long. As the indices reached higher levels, selling pressure emerged. The Sensex later slipped to around 78,070, while the Nifty dropped closer to the 24,200 mark.

How The Market Moved During The Day?

At 9:15 AM, the market opened strong and Nifty quickly touched its day’s high.

Between 9:20 and 9:45 AM, the first round of selling began, pulling the index lower. By 10 AM, pressure increased further.

For the next phase, the market traded in a narrow range. But after 11:30 AM, selling intensified again. Nifty broke below 24,200 and touched a low of 24,153 during the day.

Top 5 Reasons Behind The Fall

Profit Booking After Rally: After Wednesday’s strong rally, investors started booking profits at higher levels, leading to a decline in the market.

Strong Resistance At 24,400: Nifty faced strong technical resistance near the 24,400 mark, which triggered selling pressure.

Weakness In Auto Stocks: Shares of Hero MotoCorp and Eicher Motors declined, dragging the market lower.

Selling In FMCG Stocks: Heavyweights like Britannia Industries and Nestlé India also saw selling pressure, impacting the indices.

Weak Corporate Results: Stocks such as GTPL Hathway and Tejas Networks fell after weak earnings, affecting overall sentiment.

Crude Oil Added To The Pressure

Crude oil prices moved higher to around $88 per barrel, adding further pressure on the market.

For an import-dependent country like India, rising oil prices increase inflation concerns and input costs for companies. This led investors to book profits and reduce exposure at higher levels.

What Lies Ahead?

Market experts believe that unless Nifty sustains above the 24,400 level, selling pressure may continue at higher levels.