Markets stumble after early gains: Nifty hovers near 23,600, Sensex falls 300 points; NTPC, BEL, ITC see deep cuts
Updated: Feb 6, 2025, 15:12 IST
The Market experts anticipate a rather flat session as we have noticed since morning. The Nifty is likely to trade within a tight range as investors await the RBI’s Policy announcement on February 7.
“ With RBI policy coming tomorrow, today could be a rangebound outing with the market oscillating between support at 23528 and resistance at 23835,” said Akshay Chinchalkar, Head of Research, Axis Securities.
On January 6, 2025, Indian equity markets experienced a significant downturn after an initial positive opening. The BSE Sensex plummeted by 1,258.12 points, or 1.59%, closing at 77,964.99, while the NSE Nifty 50 declined by 388.70 points, or 1.62%, ending the day at 23,616.05.
Sectoral Performance
All sectoral indices concluded the session in negative territory. The PSU Bank index suffered a 4% decline, with significant losses in the metal, realty, energy, PSU, power, and oil & gas sectors, each falling by approximately 3%. The BSE Midcap index decreased by 2.4%, and the Smallcap index dropped by 3%.
Top Gainers and Losers
Among the Nifty 50 constituents, the top gainers were Apollo Hospitals, Tata Consumer Products, Titan Company, and HCL Technologies. Conversely, the biggest losers included Tata Steel, Trent, Coal India, NTPC, and BPCL.
Notable Stock Movements
NTPC: The stock declined by approximately 4%, closing at ₹335.23. The downturn occurred despite the company's recent initiatives in renewable energy projects.
Bharat Electronics Limited (BEL): BEL shares experienced a significant drop, reflecting broader market trends. The decline comes amid recent contract acquisitions, including a notable order from NTPC.
ITC: The stock faced a substantial decline, contributing to the overall negative sentiment in the FMCG sector. This movement aligns with the broader market downturn observed during the session.
Market Sentiment
Analysts attribute the market's decline to a combination of global economic uncertainties, profit-booking by investors, and concerns over potential policy changes. The widespread sell-off across sectors indicates a cautious approach adopted by market participants amid prevailing uncertainties.
Investors are advised to monitor global economic indicators and corporate earnings reports closely, as these factors are expected to influence market movements in the near term.