The equity benchmark indices ended lower on Friday (October 23), with the Sensex falling 126 points to 73,124 and the Nifty 50 declining 88 points to close at 22,600. The broader market came under sharper pressure, with the Nifty Midcap index plunging 1,263 points, or over 2%, to 55,801.
The benchmark indices recovered from their intraday lows but remained in the red at the close. Market breadth strongly favoured declines, with the National Stock Exchange’s (NSE) advance-decline ratio at 1:6.
Why Did The Stock Market Fall Today?
1. Midcap Stocks Lead The Market Decline
Broader markets saw a sharp sell-off, with the Midcap index sliding over 2%. The underperformance of midcap stocks kept market breadth firmly in favour of declines, with six declining stocks for every advancing stock on the NSE.
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2. Banking Stocks Drag, Nifty Bank Falls 638 Points
The Nifty Bank index declined 638 points to close at 54,287. Shriram Finance was the biggest Nifty loser, falling 4% as asset quality worsened.
3. Metal Stocks Remain Under Pressure
Metal stocks continued to face selling pressure, with JSW Steel falling 3% despite reporting healthy second-quarter results.
4. Swiggy Suffers Biggest Single-Day Fall
Swiggy shares plunged 17%, marking their biggest single-day fall, amid underperformance in its quick-commerce business.
5. Capital Goods Stocks Fall Amid AI Stock Sell-Off
Capital goods stocks declined following a sell-off in artificial intelligence (AI) stocks, with ABB falling 5%.
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Colgate shares declined another 5% after the company reported lower-than-expected results. Shriram Finance was the top Nifty loser, falling 4% as asset quality worsened. JSW Steel declined 3% despite healthy Q2 results, while Swiggy slumped 17% amid quick-commerce business underperformance.
ABB fell 5% as capital goods stocks came under pressure following the sell-off in AI stocks. Colgate dropped another 5% after reporting lower-than-expected results. CG Power ended with minor losses, while SBI Card fell 32% following its Q2 results.
From the Sensex basket, Larsen & Toubro Ltd, Tata Consultancy Services Ltd, Axis Bank Ltd, Max Healthcare Institute Ltd and Asian Paints Ltd were the major gainers. Tata Steel Ltd, Shriram Finance Ltd, Jio Financial Services Ltd, Hindustan Aeronautics Ltd, JSW Steel Ltd and Nestle India Ltd were the biggest laggards.
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