Indian stock market indices declined a percent each on Wednesday dragged by profit booking at higher levels. The Sensex crashed more than 900 points to fall below 79,600 level, while the Nifty 50 tanked more than 200 points to slip below 24,200.
Sensex hit an intraday low of 79,435.76, falling 915.88 points, while the Nifty 50 touched a low of 24,141.80, down 291 points. The benchmark Nifty 50 hit a record high of 24,461.05 in the opening trade today.
Bank Nifty index also traded nearly 1% lower. The index declined 491 points to hit a low of 52,077.90.
All the sectoral indices were trading in the red, with Nifty Auto, Nifty PSU Bank, Nifty IT and Nifty Oil & Gas indices falling the most. Selling intensified in the broader markets as well. The Nifty Smallcap 100 and the Nifty Midcap 100 indices were down over 1.5% each.
The benchmark equity indices, Sensex and Nifty 50, hit their record highs on Tuesday. However, profit booking at higher levels amid concerns over stretched valuations, cautiousness ahead of Q1 results and mixed global market cues weighed on investor sentiment.
“Investors should be careful about the high level of speculative activity in the Smallcap space where operators are driving up the prices of many shares with low floating stock,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
On the technical front, Nifty breached a major downside support of 24,300 level.
Shrey Jain Founder and CEO SAS Online noted the continued underperformance of Bank Nifty relative to Nifty.
“For today’s weekly expiry, we expect Bank Nifty to consolidate around the 52,500 level, However, a pullback towards 52,250 could present a buying opportunity. We can await any directional move that may arise from news events. A decisive break in either direction is likely to lead to trending moves,” said Jain.
(This is a developing story. To be updated)
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