The Nifty closed below 23,800 at its lowest closing level in nearly two months. So, what dragged the market lower? Here are the key factors behind the fall:
1. Geopolitical tensions weigh on sentiment
Heightened geopolitical tensions weighed on the market, with the benchmark indices giving up key levels during the session.
2. IT stocks lead Nifty losers
Information Technology (IT) stocks were among the top Nifty losers. Infosys fell 4%, while Tech Mahindra declined 2%.
ALSO READ | ESDS Software shares are up 150% in two sessions; Choice Broking sees another 42% upside
3. Insurance stocks come under pressure
Insurance stocks remained under pressure ahead of the monthly update. ICICI Prudential Life Insurance fell 4%.
4. Other sectors see selling pressure
Cable and wire stocks extended Friday’s losses, with KEI Industries falling 3%. Gold financiers also slipped, tracking precious metals prices, with Manappuram Finance down 4%.
Media shares also saw a sharp decline, with PVR INOX and Zee Entertainment Enterprises falling 6% each. The broader market also weakened. The Nifty Bank slipped 281 points to 57,088, while the Midcap index fell 293 points to 62,786.
ALSO READ | Zydus Wellness up 8%, PVR Inox down 7%: Check out other Nifty 500 top movers
Market breadth favoured declines, with the advance-decline ratio at 2:3. As many as 37 Nifty stocks ended lower, including 17 stocks that fell 1% or more.
On the gaining side, Eicher Motors and Maruti rose 1% each on new launches, while Vodafone Idea gained 4% after the Supreme Court rejected the Goods and Services Tax (GST) demand against the company.
Among midcaps, Zydus Life, Bosch, Supreme Industries, Nippon Life India Asset Management and Piramal Pharma were among the top gainers. Avalon Technologies surged 9% on a positive brokerage note following the joint venture announcement. Among small caps, PC Jeweller, Rishabh Instruments, Hikal and CarTrade Tech were among the top gainers.
ALSO READ | Purple Style Labs shares list at discount on Dalal Street; stock opens 7% below IPO price
From the Sensex basket, Apollo Hospitals Enterprise Ltd, Eicher Motors Ltd, Coal India Ltd, Larsen & Toubro Ltd, Tata Consumer Products Ltd and Power Grid Corporation of India Ltd were the major gainers.
Infosys Ltd, SBI Life Insurance Company Ltd, Jio Financial Services Ltd, Wipro Ltd, Tata Steel Ltd and Tech Mahindra Ltd were the biggest laggards.
