Indian equity benchmarks opened sharply lower on Wednesday, April 30, with the BSE Sensex tumbling nearly 500 points and the NSE Nifty slipping below the key 24,000 level. The decline was driven by weak global cues after the US Federal Reserve hinted at maintaining higher interest rates for longer, coupled with profit-booking in recent gainers.
Market Performance at Opening Bell
The 30-share BSE Sensex plunged 497.32 points, or 0.62%, to open at 78,932.45. The broader NSE Nifty50 dropped 146.70 points, or 0.61%, to start at 23,978.55. Among the 30 Sensex stocks, 24 opened in the red, while only 6 managed gains.
Top Gainers and Losers
Bajaj Finance emerged as the top gainer, rising 1.2% after the company reported strong quarterly results. Other gainers included Bajaj Finserv, HDFC Bank, and ITC. On the losing side, Tata Motors fell over 2% after disappointing March quarter sales, followed by SBI, ICICI Bank, and Reliance Industries which dropped between 0.5% and 1%.
Factors Behind the Decline
Market analysts attributed the fall to multiple factors. The US Federal Reserve's stance on keeping interest rates elevated to combat inflation dampened investor sentiment globally. Additionally, concerns over the pace of economic recovery in China and rising crude oil prices added to the pressure.
Vedanta Demerger News
Vedanta Ltd shares were in focus after the company announced a demerger plan to unlock value. The stock opened flat but later gained 0.8% as investors awaited further details. The demerger is expected to streamline operations and improve shareholder returns.
Sectoral Performance
Most sectoral indices traded in negative territory. The Nifty Bank index fell 0.7%, while Nifty Auto dropped 1.2%. The Nifty IT index also declined 0.5% amid weak global tech stocks. However, the Nifty FMCG index bucked the trend, gaining 0.3% on the back of strong demand outlook.
Broader Market and Technical Outlook
The broader markets also witnessed selling pressure, with the BSE Midcap index down 0.6% and the Smallcap index losing 0.4%. Technical analysts suggest that the Nifty may find support at 23,800 levels, while resistance is seen at 24,200. A breakout above 24,200 could trigger a rally, but a close below 23,800 may lead to further correction.
Global Cues and Outlook
Asian markets traded mixed, with Japan's Nikkei down 0.9% and Hong Kong's Hang Seng flat. US markets ended lower overnight as the Fed's hawkish comments weighed on investor sentiment. The 10-year US Treasury yield rose to 4.7%, putting pressure on equity valuations.
Going forward, investors will watch for domestic macroeconomic data, including GDP numbers and corporate earnings, for further direction. The market remains volatile, and analysts advise caution with a focus on quality stocks.
