Market-Chaos,-

Business News Update: Indian Equities Hit Hard as BSE Sensex Sinks, Nifty50 Drops Below 23,000, Faces Tough Support Levels

 

The Indian stock market opened the week on a shaky note, with the BSE Sensex plunging over 500 points to settle at 75,626.79, and Nifty50 slipping below the crucial 23,000 mark to 22,926.80.

A combination of heavy selling by foreign portfolio investors (FPIs) and lackluster corporate earnings from the December quarter has left investors cautious.

 

Foreign Investors Keep Selling, Adding Pressure

 

Market sentiment was further doused as the world did not throw too much of a lifeline. Though Asia rose, Wall Street dipped last week, as mixed economic data and apprehension over the Federal Reserve meeting weighed heavily on stocks.

Locally, FPI sold ₹2,758 crore worth of shares on Friday, leading to pressures on the market. The buying by domestic institutional investors (DIIs) tried to be contrary and stood at ₹2,402 crore, but that was not enough to stabilize the market.

 

Nifty50 Faces Key Support Levels

 

Technical indicators indicate increased downside risk for Nifty50. Once the immediate support level is broken below 22,975, the index might fall back to 22,800. Investors are eyeing key events this week in the form of the presentation of Union Budget on 1 February.
There is also a special trading session scheduled during real-time reactions from the government announcements, so it is a crucial week in determining market directions.

 

Global Markets Bring Mixed Signals

 

Adding to a cautious tone are mixed trends in commodities from global regions. Gold, for instance slid slightly as U.S. greenback strengthened leading up to the Federal Reserve decision on interest rate. Crude oil fell above 1 per cent after appeals by the US President to OPEC to reduce their prices.

The Indian markets are still under pressure as investors wait for those economic shifts and policy updates. With volatile global and domestic trends in focus, all eyes are on the Union Budget and its potential to lift the sentiment.