Sensex Drops 353 Points as Nifty Closes Below 22,700 on October 28
Indian stock markets faced a downturn on October 28, with significant losses in IT and oil sectors amid global economic concerns.
Sensex fell by 352.64 points to close at 73,246.03.
Nifty slipped 50.90 points, ending at 22,698.85, influenced by selling in major sectors.
Broader markets showed resilience with midcap and smallcap indices gaining 0.4% and 0.9%, respectively.
On October 28, Indian benchmark indices experienced a significant decline, with the Sensex dropping 352.64 points, or 0.48%, to settle at 73,246.03. The Nifty index also fell by 50.90 points, or 0.22%, closing at 22,698.85. This downturn was primarily driven by a sell-off in the information technology and oil and gas sectors, as investors reacted to global economic signals, including rising Brent crude prices and uncertainty surrounding the US Federal Reserve's policy decisions.
The market's decline came in the wake of geopolitical tensions, particularly an attack on a Saudi Arabian refinery, which contributed to a cautious investor sentiment. Despite the overall market downturn, the broader indices showed some strength, with the Nifty midcap index rising by 0.4% and the smallcap index increasing by 0.9%. This indicates a divergence in performance, as smaller companies managed to attract investor interest amidst the broader sell-off.
Among the top losers in the Nifty index were major companies such as Infosys, Reliance Industries, and ONGC, all experiencing declines of over 2%. In contrast, Apollo Hospitals and L&T emerged as notable gainers, with Apollo's shares rising by 4.43% after a strong performance report. Other sectors like Auto and Pharma also saw gains, with increases of around 1% each, highlighting a mixed performance across different market segments.
The Indian rupee also faced pressure, closing at 95.23 per dollar, down from 95.12. Approximately 220 stocks reached their 52-week lows, reflecting broader market challenges. Notably, shares of Gandhar Oil Refinery dropped 17% despite a significant profit surge, illustrating the volatility in investor confidence.
Looking ahead, analysts suggest that the Nifty index is likely to remain range-bound between 22,400 and 22,800. Key support is identified at 22,500, while resistance is seen at 22,800. Market participants are advised to remain cautious, especially with the current volatility and external economic pressures. A decisive breakout above these levels could signal renewed buying interest, while any weakness may find support at lower levels.
