Stock Market Highlights: Sensex Falls By Over 500 Points, Nifty Slips 170 Points To End At 21,612

On Monday, the BSE Sensex, comprising 30 key stocks, saw a decline of 523 points, equivalent to .73 percent, closing at 71,072.49. Meanwhile, the Nifty, a benchmark index for NSE, saw a fall of 170.05 points, or .78 percent, ending at 21,612.45.

Within the Nifty index, several prominent companies, including DRREDDY, DIVISLAB, HCLTECH and WIPRO, were among the top gainers. Meanwhile, COALINDIA, BPCL and ONGC, were among the top losers.

The stocks that had previously delivered substantial returns also experienced a downturn, ranging from IRFC to RVNL, and from Tata Power to IREDA, ended the session in deep red.

Vinod Nair, Head of Research, Geojit Financial Services said, "An uptick in exchange margin requirements caused a decrease in positions, primarily in mid and small caps. Aside from the pharma and IT sectors, selling was widespread, with notable struggles seen in PSU banks. The premium valuation gap between mid to large caps has notched to its all-time high. Despite a robust economic forecast, corporate earnings are expected to slow due to moderated operating margins. It is going to be a challenge for the broad market to sustain the premium valuation. Large caps are predicted to excel amid consolidation."

In the sectoral landscape, the Nifty Bank index, witnessed a decline of 752.30 points to end at 44,882.25. Meanwhile, the Nifty Midcap 100 and Smallcap 100 indices also experienced significant drops of 2.48% and 4.01%, respectively.

Rupak De, Senior Technical Analyst, LKP Securities said, "Nifty declined further after a consolidation breakdown on the hourly chart, indicating an increase in pessimism. The daily chart shows the index forming a lower top, signaling diminishing bullish sentiment. The momentum indicator aligns with this bearish outlook, displaying a crossover. The Nifty might remain sell on rise as long as it remains below 21850. On the downside, support is situated at 21500."

According to National Stock Exchange data, on Friday, the Foreign Institutional Investors (FIIs)

purchased equities worth Rs 141.95 crore and DII offloaded equities worth Rs 421.87 crore.