Benchmark indices closed lower on Thursday due to widespread selling in financials, IT, and consumption stocks, while selective buying in pharma stocks helped mitigate deeper losses. The BSE Sensex ended at 77,664, down 852.49 points or 1.09%, and the NSE Nifty 50 settled at 24,173.05, a decrease of 205.05 points or 0.84%, falling below the 24,200 mark.
Market pressure persisted throughout the session, with the Nifty hitting an intraday low of 24,134.80 after opening at 24,202.35. Investor profit-taking was evident in heavyweight banking and technology sectors, reflecting weakness in the Sensex.
Private lenders and IT stocks were among the major drags on the Nifty. HDFC Bank dropped 2% to Rs 783.90, ICICI Bank declined by 1.51% to Rs 1,347, Infosys fell 2.9% to Rs 1,231.80, and Tech Mahindra lost 3.12% to Rs 1,416.90.
Consumer and retail companies also experienced significant declines. Trent plummeted 4.3% to Rs 4,244, becoming one of the top losers on the index. Bajaj Finserv decreased by 3.07%, and Shriram Finance fell by 3.31%.
Contrary to the overall market sentiment, pharma stocks showed strong performance. Dr. Reddy’s Laboratories surged by 8.87% to Rs 1,325, with a peak of Rs 1,357 during the session, making it the top gainer on the Nifty. Cipla rose by 5.72% to Rs 1,307, and Sun Pharmaceutical Industries added 0.49%. Other gainers included Jio Financial Services advancing by 4.19%, Adani Enterprises gaining 1.78%, and Apollo Hospitals Enterprise rising by 1.45%.
Vinod Nair, Head of Research at Geojit Investments Limited, attributed the broad decline in domestic equities to elevated crude oil prices above $100 per barrel and the ongoing US-Iran negotiations impasse which weighed on investor sentiment. He highlighted weak global cues, persistent FII outflows, a depreciating INR, and higher US Treasury yields as further intensifying the risk-off mood.
Although the domestic composite PMI indicated ongoing business activity expansion, concerns regarding rising input costs, margin pressure, softer export demand, and weakening forward-looking confidence restrained significant buying interest. Sector performance was predominantly negative, with defensives like pharma and healthcare being perceived as safer options amid the broader market downturn.
The banking, IT, and financial sectors experienced weakness, overshadowing gains in healthcare and specific energy stocks. Market breadth leaned towards caution as losers outnumbered gainers among frontline stocks. Analysts noted profit-taking following a recent rally, while stock-specific movements driven by earnings expectations and sector rotation continued to influence trading trends.
The near-term market direction is expected to hinge on upcoming corporate results, global indicators, and foreign fund flows.