Sensex, Nifty fall below key EMAs; Adani Enterprises, Cipla top losers

Indian equity benchmarks took a sharp turn south on Thursday, with the Sensex and Nifty sliding below their key exponential moving averages (EMAs) during midday trading. The sell-off was led by heavyweights such as Adani Enterprises and Cipla, which dragged the broader market lower.

At around 12:15 pm, the BSE Sensex was trading 450 points lower at 58,200, while the NSE Nifty slipped below the 17,300 mark, losing 135 points. Both indices had breached their 50-day and 100-day EMAs, a technical signal that often points to short-term bearishness.

Adani Enterprises, Cipla lead the plunge

Adani Enterprises was the worst performer on the Nifty 50, shedding over 5% in intraday trades. The stock has been under pressure for several sessions amid concerns over the group's debt levels and a broader correction in infrastructure and energy stocks.

Cipla followed closely, falling nearly 4% after reports of regulatory scrutiny at one of its manufacturing facilities. The pharmaceutical major has not yet issued an official statement, but traders said the uncertainty weighed heavily on sentiment.

Other notable losers included Hindalco, UPL, and Tata Motors, each dropping between 2% and 3%. The Nifty Metal and Nifty Pharma indices were the worst hit among sectoral gauges.

Broader market under pressure

The sell-off was not limited to large-caps. The BSE Midcap and Smallcap indices also declined over 1% each, reflecting a broad-based risk aversion. Analysts attributed the weakness to a combination of global cues and domestic profit-booking.

On the global front, US futures edged lower after a mixed session on Wall Street, while Asian peers traded in the red. The rising dollar index and a spike in crude oil prices added to the nervousness, as India imports most of its oil needs.

Market breadth was negative, with roughly two stocks declining for every one advancing on the BSE. This suggested that the selling pressure was widespread and not limited to a few counters.

Technical breakdown sparks caution

Traders noted that the breach of key EMAs could trigger further selling in the near term. The 50-day EMA on the Nifty is currently placed around 17,350, and the index has been struggling to hold above that level for the past few sessions.

“If the Nifty closes below the 100-day EMA, which is near 17,200, we could see a deeper correction towards 17,000,” said a technical analyst at a domestic brokerage. “Investors should remain cautious and avoid aggressive bets until the market stabilises.”

The volatility index, India VIX, rose over 3%, indicating heightened anxiety among participants. Options data suggested that put writers were active at the 17,200 and 17,000 strikes, implying that these levels could act as support in the coming days.

Looking ahead, all eyes will be on the weekly F&O expiry and any fresh triggers from global central bank commentary. The market's ability to reclaim the crucial EMAs in the next session will likely determine the trajectory for the rest of the week.