Nifty Index Drops Below 22,200 Amid Global Risk Aversion and Pharma Sector Decline
Nifty slides below 22,200 level; pharma shares decline for 4th day
Business Standard
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The Nifty 50 index fell by 2.05%, dropping below the 22,200 mark as global risk aversion impacted domestic markets. Pharma shares suffered losses for the fourth consecutive day, with the Nifty Pharma index down 3.74%. Concerns over rising inflation due to surging Brent crude prices added to market volatility.
- 01Nifty 50 index declined by 2.05%, closing at 22,215.
- 02The S&P BSE Sensex dropped 1,474.61 points or 2.01%.
- 03Pharma sector continued its downturn with a 3.74% decline in the Nifty Pharma index.
- 04Market breadth was negative, with 2,782 shares falling compared to 891 shares rising.
- 05Brent crude prices surged towards $105, raising inflation concerns.
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In morning trade, the Nifty 50 index experienced a significant decline, falling 465.15 points or 2.05% to settle at 22,215. This drop was influenced by global risk aversion following former US President Donald Trump's hawkish stance on Iran and rising Brent crude prices nearing $105, which heightened inflation worries. The S&P BSE Sensex also faced losses, plummeting 1,474.61 points or 2.01% to reach 71,653.15. The broader market underperformed, with the BSE 150 MidCap Index down 3.09% and the BSE 250 SmallCap Index decreasing by 2.89%. The Nifty Pharma index fell 3.74%, extending its losses for the fourth consecutive session, with major pharmaceutical companies like Biocon and Glenmark Pharmaceuticals seeing declines of 6.07% and 5.48%, respectively. Overall, the market breadth was weak, with 2,782 shares declining against 891 shares that rose. The NSE's India VIX, indicating expected volatility, increased by 4.65% to 26.18.
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The decline in the Nifty index and the pharma sector may affect investor confidence and could lead to reduced stock market investments. Rising inflation concerns may also impact consumer spending.
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