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Sensex, Nifty decline as selling pressure drags markets into red after positive start

November 21, 2024 11:58 AM IST

Nifty-Sensex

India’s benchmark indices fell on Wednesday after a positive start, with selling pressure pushing the markets into negative territory.

The Nifty 50 opened with a gain of 64.70 points (0.28%) at 23,518.50, while the BSE Sensex added 132.73 points (0.17%) to start at 77,711.10. However, early optimism quickly faded as selling pressure dominated the session.

By 9:43 a.m., the Sensex had dropped 610.10 points, or 0.79%, to 76,968.28, while the Nifty declined 209.65 points, or 0.89%, to 23,308.85.

Market experts suggest that volatility may continue into next week, with state election results expected to play a key role in shaping investor sentiment.

Ajay Bagga, a banking and market expert, attributed the market’s weakness to global factors, including Nvidia’s earnings results, the ongoing Ukraine conflict, and legal challenges against the Adani Group in a U.S. court. “Asian markets are soft this morning, and we expect Indian markets to follow a similar trend, with potential support if the ruling coalition performs well in the state elections,” Bagga said.

Among the major losers on the Nifty 50, Adani Enterprises and Adani Ports hit their lower circuit limits, both tumbling nearly 10%. Shares of Adani Green Energy also saw steep declines, plunging 18%.

Akshay Chinchalkar, Head of Research at Axis Securities, said that the Nifty’s technical setup indicates a potential bullish trend if it can break above Tuesday’s high and hold support near 23,350. “Any breakdown could bring focus to 23,200, a key Fibonacci level tied to the election-day lows and record highs,” Chinchalkar added.

Elsewhere in Asia, selling pressure persisted, with Japan’s Nikkei 225 down 0.84% and Hong Kong’s Hang Seng dropping 0.19%. However, South Korea’s KOSPI and Indonesia’s Jakarta Composite posted modest gains.

In the U.S., the S&P 500 and Nasdaq indices closed nearly flat on Wednesday, indicating a phase of consolidation in global markets.

(With ANI input)

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Last updated on: 22nd November 2024