Closing Bell: Sensex, Nifty end 1% lower; IndiGo, SpiceJet shares skid by up to 3% after Ahmedabad plane crash

The Indian equities market witnessed sharp selling on Thursday, with the benchmark indices, the BSE Sensex and the NSE Nifty, falling over 1% each, triggered by a combination of global and domestic factors. The negativity in the market was injected by weak global cues, particularly concerns around sticky U.S. inflation data and the possibility of delayed interest rate cuts by the U.S. Federal Reserve, along with rising geopolitical risks in the Middle East. On the domestic front, profit booking after a recent rally and volatility due to the weekly expiry of Nifty50 F&O also weighed on market sentiment.

The BSE Sensex ended at 81,691.98, down by 823.16 points, or 1%, while the NSE Nifty50 breached the crucial 25,000-mark for the first time since June 5, closing at 24,888.2, down by 253.2 points, or 1.01%. The broader market also saw a surge in selling activity, with the Nifty Midcap100 and Nifty Smallcap100 index falling by 1.73% and 1.90%, respectively.

During the session, the 30-share Sensex declined by as much as 992 points, or 1.2%, to hit an intraday low of 81,523, while the 50-share Nifty slide by 315.5 points to touch the day’s low of 24,826.

“The market's negative close was driven by several factors. Renewed tariff concerns and escalating geopolitical tensions in the Middle East weighed heavily on investor sentiment. Rising crude oil prices, fueled by Middle-East instability and stalled nuclear talks with Iran, added to the bearish mood,” said Vaibhav Vidwani, Research Analyst at Bonanza.

Among individual stocks, shares of domestic aviation companies - IndiGo parent Interglobe Aviation and SpiceJet - ffell by up to 3.4% after an Air India plane crashed near the Sardar Vallabhbhai Patel International Airport in Ahmedabad after take-off.

On the BSE Sensex pack, 27 out of 30 stocks ended in the red zone, led by the Tata group companies – Tata Motors , Titan , Tata Steel , and TCS - which fell in the range of 2.25-2.9%. Among others, Eternal (Zomato) , Power Grid , L&T , Mahindra & Mahindra , HUL , Ultratech Cement , and Axis Bank were among the notable losers. On the other hand, Bajaj Finserv , Asian Paints , and Tech Mahindra were the only gainers, ending marginally higher.

On the sectoral front, all indices closed in the red, with realty, energy, consumer durables, oil & gas, auto, PSU bank, and FMCG emerging as the top laggards.

Caution to prevail in the near terms, say analysts

“Looking ahead, market participants are likely to remain cautious in the near term as they await clarity on global monetary policy direction and domestic macroeconomic data,” said Pranay Aggarwal, Director and CEO of Stoxkart, a discount brokerage firm.

Technically, the Nifty has once again approached the support zone of its short-term moving average—the 20-day EMA—which currently lies around the 24,800-mark, said Ajit Mishra, SVP-Research, Religare Broking. “A decisive break below this level could lead the index back into a consolidation phase.”

Given the prevailing uncertainty, he recommends maintaining strict stop-losses in short-term trades, particularly in the mid-cap and small-cap space. It is also advisable to avoid aggressive long positions until a clearer directional trend emerges, he said.

Vinod Nair, Head of Research at Geojit Investments, said the consolidation in the domestic markets is evolving into a broad-based trend, now extending to large-cap stocks. “Valuation concerns and rising oil prices—driven by the Middle East tensions—are fuelling risk aversion among investors.”

Shrikant Chouhan, Head Equity Research, Kotak Securities, opined that the benchmarks Nifty and Sensex breached the crucial support level of 25,000 and 82,000, respectively, which intensified selling pressure. On daily charts, it has formed a long bearish candle, which supports further weakness from the current levels.

“We are of the view that the short-term market texture is weak, but a fresh selloff is possible only after the dismissal of 24,825/81500 or below the 20-day SMA (Simple Moving Average). Below this level, the market could slip to 24,700-24650/81100-81000. On the other hand, above 24,920/81800, we could expect a quick intraday pullback rally up to 25,000-25,050/82000-82150,” he said.

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