1745572403945Sensex drops 900+ pts, Nifty slips below 24K amid profit booking, geopolitical tensions , market risks and potential threats

 

At one fell swoop, the stocks of India have sunk under sharp losses turning into recent bullish trend, it alleviated. Benchmark indices Sensex and Nifty 50 remain skeptical under heavy profit booking and weak global cues combined with rising geopolitical fracas. After a strong seven-session rally, investors seem to be locking in gains ahead of the weekend, especially amid heightened tensions in Jammu and Kashmir.

 

Market Overview

 

The BSE Sensex was down by more than 900 points and trading levels close to 78,880, which reflected a drop of somewhere around 1.15%. Likewise, it drops more than 300 points from the NSE Nifty 50 and fluctuates above 23,940. This cut is even more than 1.25%. The downward correction appears as the first great decline that would break a positive streak, which pushed the Nifty to cross the 24,300 level earlier this week. Mid and small-cap indices also reflect the broader market sentiment, both showing sharp intraday declines.

Market participants are exposed to wide volatility with sectors entering and exiting the negative territory as traders react to several headwinds inclusive of geopolitical tension, institutional flows, and global market reactions. 

 

Sectoral Performance

 

All major sectoral indices are currently in the red, indicating a broad-based selloff. The Nifty Metal index pulls back nearly 2% as global commodity prices are weighing on the sector. Realty, Auto, Media, and Power sectors each lose between 2% and 3% indicating concerns being raised regarding demand slowdown and valuation fatigue.

Not even traditionally defensive sectors such as grocery and pharmaceutical could provide any solace as they trade from flat to slightly lower. Banking shares plummet with almost 1.5% Nifty Bank lower dragged by private sector banks, while PSU banks appear to be showing mixed movement that does provide some intra-day support. 

 

Top Gainers and Losers

 

There is also a handful of stocks still trading in the green amidst the overall bearish market condition. 

 

Top Gainers: Nifty 50:

 

More than 4% was gained by SBI Life Insurance on account of good quarterly results. Beneficiary of optimism in this sector, HDFC Life is trading positively. Infosys, TCS, and Wipro are standing slightly up as the IT sector works to recover from a spell of bad-tempered trading performance. 

 

Top Losers: Nifty 50:

 

Axis Bank tumbles by more than 4% as its Q4 earnings disappoint street wisdom due to higher provisions and moderating margins. 
Bajaj Finance and Bajaj Finserv were lower by over 3% due to the reaction of the broader market that showed negative sentiments as well as issues regarding valuations. Jio Financial Services and Trent also contributed to the downward reflection profit booking in high-performing counters. 

 

Investor Sentiment and Market Breadth

 

It is overwhelmingly biased toward the decliner, so really not much to see here. Declining stocks are now outnumbering advancers in huge proportions on the NSE, a clear indication for intense selling action across the board. Booking of profits will be even more intense in midcaps and recently roused stocks, as investors are looking to avoid risk in this time of uncertainty.


Geopolitical tensions stemming from a terrorist attack in Pahalgam, Jammu and Kashmir, create additional nervousness among market participants. With political developments and general elections on the horizon, traders turn cautious and reduce aggressive bets.

 

Global Market Cues

 

Asian markets opened in a mixed reaction, where at one end the indexes in Japan, Nikkei and Korea, KOSPI were flat to moving negatively. On the other hand, Hang Seng index in Hong Kong just managed to make significant gains. Investors worldwide take note of fresh new disclosures on inflation and corporate earnings in America, which coupled with speculation for interest rates changes.

The Wall Street closed in the positive territory after the last session as DOW, S&P 500, and NASDAQ derived gains from the positive earnings on the technology sector. However, this does not stir much excitement or sentiment for the Asian markets because some regionally related uncertainties.

While European markets are seen to open mixed on flat to negative lines, all eyes would be on critical data and central bank voicing.

 

FII and DII Activities

 

Foreign Institutional Investors (FIIs) have continued to buy aggressively and contributed over ₹8,000 crore in the last session. While early data suggests continued interest in buying from abroad, inflows may fall off some if volatility goes up. Domestic Institutional Investors (DIIs), in fact, appear to be profit-taking and lowering their stock positions, particularly in overbought sectors.

Institutional activity remains key today as it also determines whether any intraday bounce is sustainable.

 

Stock Recommendations and Trading Ideas

 

Many market experts are giving stock calls to take advantage of short-term opportunities because of volatility:

Varroc Engineering: Buy around ₹464, put a target of ₹490 and a stop loss of ₹445. Overall market weakness notwithstanding, the stock sets up a bullish basis.

VETO Switchgears: Buy at ₹115 and target ₹130. Traders see accumulation activity for the last few sessions. 

Finolex Industries: Buy around ₹176, with a target of ₹186 for the short term. The stock shows strengths in an otherwise weak sector. 

Traders should maintain strict stop losses and very low exposure until a stabilized market sentiment is restored.

 

Technical Outlook

 

From a technical standpoint, the Nifty 50 has immediate support at the 23,800 zone. A breach below this level could invite further downside toward 23,500. On the upside, resistance remains at 24,200–24,300. Unless the index breaks past this level with strength, the trend may remain sideways with a negative bias.

The Bank Nifty index trades near crucial support at 54,500, and analysts project a possible pullback if the level holds. A close below that could trigger downside toward 53,800.

Volatility index (India VIX) moves higher during the day, indicating increased nervousness among market participants and suggesting further swings in the short term.

The Indian stock market enters a corrective phase after a powerful rally, as investors weigh geopolitical developments, global cues, and corporate earnings. While long-term sentiment remains positive, the short-term picture appears cautious. Market participants closely track support levels and institutional flows to gauge the direction for the coming sessions.

Key earnings in the upcoming week and further updates on international relations could act as the next catalysts. Until then, traders are expected to remain watchful, with a focus on stock-specific action and technical levels.