Stock Market Today: Sensex Drops 375 Points, Nifty Slips To 25,110, Why Did Market Fell Today?

Indian stock market benchmarks, Nifty and Sensex, ended in red after trading in a narrow range on Thursday, July 17. Investor sentiment remained cautious amid global uncertainty, fueled by speculation that US President Donald Trump might remove Federal Reserve Chair Jerome Powell, despite Trump's denial of any immediate plans.

BSE Sensex closed at 82,259.24, down 375.24 points or 0.45 per cent, while the Nifty50 index ended at 25,110.0, down 101.15 points or 0.40 per cent. Profit booking emerged in Banking and IT stocks, making them top draggers of the market.

Top Gainers And Losers:

Tech Mahindra, Indusind Bank, Infosys, Wipro, SBI Life, and HCL Tech were among the biggest losers on the Nifty. While, Tata Consumer, Tata Steel, Hindalco, M&M, Trent and Tata Motors were the nifty gainers today.

Sectors had a mixed closing. Nifty IT fell 1.39%, followed by Nifty PSU Bank, falling by 0.79%. Media, Oil & Gas also ended in red. The pharma index rose 0.38%, metal index rose 0.67%and Realty, healthcare, consumer Durables also closed in green.

The BSE Midcap index closed 0.07% higher, moving mostly in line with the main market index. Meanwhile, the BSE Smallcap index did slightly better, finishing with a gain of 0.3%.

Overall, market breadth was negative with 2,040 stocks declining, 2,007 advancing, and 152 remaining unchanged on the Bombay Stock Exchange.

Why Did Markets Fell Today?

The market fell mainly due to losses in tech, banking, and financial stocks. Investors were cautious because of global uncertainty, including rumors that US President Donald Trump might remove Federal Reserve Chair Jerome Powell. Ongoing US-India trade talks also added to the cautious mood.

"Indian equity benchmarks ended marginally lower as investors exercised caution amid subdued Q1 earnings announcements, particularly in the technology and banking sectors. Market participants remained sidelined due to elevated valuations of large-cap stocks and FII outflows owing to the uncertainty regarding US-India trade deal; however, any positive developments could amplify market sentiment.

Despite the muted trend, strong domestic liquidity and selective buying in realty and consumption theme stocks helped to limit the downside, keeping the broader market in a range-bound phase. The domestic macro fundamentals, like GDP growth and the stable inflationary trend, remain supportive in the medium to long-term," Vinod Nair, Head of Research at Geojit Investments.

Nifty Outlook:

"Nifty remained mostly under selling pressure throughout the day as the index failed to move beyond the crucial resistance level of 25,260, leading to long unwinding. On the hourly chart, a consolidation breakout is visible, indicating weakening bullish momentum.

The current sentiment appears bearish and may drag Nifty towards the 24,920-24,900 zone in the short term. On the higher side, 25,260 is likely to remain a strong resistance," Rupak De, Senior Technical Analyst at LKP Securities.

Rupee VS Dollar:

The Indian rupee ended the day 13 paise lower at 86.07 against the US dollar on Thursday. On Wednesday, it had closed at 85.94.

"In line with its Asian counterparts, the Indian Rupee weakened against the US Dollar. The dollar's rally was fuelled by President Trump's statement that he does not intend to fire Federal Reserve Chairman Jerome Powell.

Even with significant dollar inflows into the primary market, the Rupee followed the regional trend, closing at 86.08. For the near term, the spot USD/INR pair has a resistance level at 86.27 and a support level at 85.65," Dilip Parmar - Senior Research Analyst, HDFC Securities.

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