Closing Bell: Market Ends With Deep Cuts, Nifty Slips To 22,500; India-Mauritius Treaty Amendments Weigh

The Indian stock market witnessed a significant downturn as investors grappled with uncertainties surrounding the India-Mauritius tax treaty amendments and a slew of other factors. The frontline indices struggled, with both the Sensex and Nifty plunging by 1%, while broader markets also faced the heat.

At the closing bell, the Sensex stumbled by a substantial 793 points, settling at 74,245, while the Nifty shed 238 points to stand at 22,516. The Nifty Bank slipped by 474 points to 48,564, and the Midcap Index followed suit, dropping by 313 points to 50,068.

In today's trading session, 43 out of the 50 Nifty stocks experienced losses, with heavyweights such as Sun Pharma, Maruti, Titan, and Power Grid leading the decline. Sun Pharma, in particular, faced a setback of 4% following adverse details from the US FDA regarding one of its units.

Maruti Suzuki continued its downward trajectory from Wednesday, extending losses by another 3% today, while Titan also remained weak, registering a nearly 3% decline. However, there were minor gains seen in TCS ahead of its earnings, closing up by 0.5%.

Midcap stocks were not immune to the selling pressure either. Page Industries took a significant hit, emerging as the top midcap loser with a 5% decrease. Laurus Labs slipped, whereas Syngene bucked the trend, ending the day with a gain of over 2% following positive brokerage notes.

The aviation sector witnessed a dip in the shares of IndiGo after receiving downgrades from two brokerages, resulting in a 3% decline. Conversely, Metropolis and Dr. Lal Pathlabs surged, up to 6%, and gained ground after strong Q4 updates.

Defence stocks remained resilient, buoyed by continued order wins, with BEL and HAL both closing up by 2%. However, the overall market breadth favoured declines, with the advance-decline ratio standing at 1:2.

Reflecting on the week's performance, the frontline indices saw minimal change, ending the week on a relatively flat note. Among the Nifty stocks, 23 experienced negative returns, with Sun Pharma, Titan, and Cipla being the top losers. Conversely, Eicher, Hindalco, Tata Consumer, M&M, and Bharti Airtel emerged as the top gainers on the Nifty.

Investor sentiment remains cautious amidst ongoing global uncertainties and domestic policy changes. As the market navigates these challenges, investors are advised to remain vigilant and adopt a diversified approach to mitigate risks in their portfolios.

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