Sensex drops over 350 points, Nifty slips below 24,500 in early trade
- Sensex slipped over 350 points in early trade
- Nifty50 fell below 24,500 level
- Weak global cues weighed on domestic equities
Markets open lower amid global weakness
Indian equity benchmarks opened sharply lower on Tuesday, with the BSE Sensex tumbling over 350 points in early trade. The NSE Nifty50 also slipped below the key 24,500 mark, tracking weak global cues.
The sell-off was broad-based, with losses led by banking, IT, and auto stocks. Market breadth turned negative, with more than two stocks declining for every advancing one on the BSE.
What is dragging the indices?
Investor sentiment took a hit as global markets struggled overnight. US stocks ended lower, and Asian peers traded mixed in early deals, adding pressure on domestic indices.
Analysts pointed to concerns over rising crude oil prices and uncertainty around global interest rates. Foreign institutional investors have also been net sellers in recent sessions, further dampening mood.
Key levels to watch
The Nifty50 has slipped below its immediate support of 24,500, a level that traders had been eyeing closely. The next support is seen around 24,300, while resistance is placed near 24,700.
Meanwhile, the Sensex is hovering around the 80,200-80,300 band after the sharp drop. Volatility is expected to remain elevated through the day as investors await further cues.
Sectoral performance
All major sectoral indices on the NSE were trading in the red. The Nifty Bank index fell nearly 1 per cent, while the Nifty IT index slipped over 0.5 per cent. Auto and metal stocks also witnessed selling pressure.
Among individual stocks, index heavyweights like Reliance Industries, HDFC Bank, and Infosys were among the top drags on the indices. Midcap and smallcap stocks, however, showed relative resilience compared to their larger peers.
What lies ahead
Market participants will now watch for any fresh triggers, including global economic data and corporate earnings. The direction of foreign fund flows and crude oil prices will also be key factors in determining near-term market movement. Traders are advised to stay cautious until clearer signals emerge.