Daijiworld Media Network- Mumbai
Mumbai, Jul 18: Indian stock markets witnessed a sharp downturn on Friday, with the BSE Sensex tumbling nearly 600 points and the NSE Nifty slipping below the crucial 25,000 mark, sparking concern among investors and traders alike.
At closing, the Sensex stood at 81,671, down by 0.72%, while the Nifty 50 ended at 24,940, registering a 0.68% decline. Market watchers attributed the fall to a combination of macroeconomic tensions, especially ongoing trade issues between India and the United States, along with technical resistance and derivative pressure.
Speaking to Daijiworld, Kranthi Bathini of WealthMills Securities said, “There is considerable uncertainty around India-US trade relations. The talks haven’t yielded concrete outcomes yet, and this is dampening investor sentiment.”
The breach of the 25,000 psychological mark on the Nifty index intensified the selling pressure, with market participants closely eyeing cues from European markets for any possible recovery signs.
Feroze Azeez, Joint CEO of Anand Rathi Wealth, highlighted that short positions in index futures have reached 84%, a level that has historically signalled an imminent bounce. “In the past 12–13 instances, when this ratio crossed 80%, the markets reversed direction. So we may see a short-term rebound soon,” he noted.
Adding to the sentiment, synthetic futures are reportedly trading at a premium, indicating possible overselling. Azeez further stated that despite market weakness, inflows into small-cap mutual funds remain robust, reflecting continued interest from retail investors.
Technical analyst Anshul Jain observed, “The Nifty is nearing its 50-day exponential moving average at 24,870. A bounce is possible here, but if it dips below this level, it could slide further to 24,733.”
Sectoral-wise, financial stocks bore the brunt, with Axis Bank and SBI Life emerging as major laggards, dragging the index down by nearly 100 points. Of the 50 Nifty stocks, 37 ended the day in the red, indicating broad-based weakness across the board.
As market volatility persists, investors are advised to tread cautiously and await further developments on the global trade front.