Stock Market Today: Global Cues Give Bear Hug to Equities

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Nifty Crashes Support to Sink Lower Amid Stock Market Rout

By S Jha

New Delhi, February 24: Absolute mayhem gripped stock market on Monday. Nifty crashed by over 220 points to trade at around 22580. Sensex sank by over 700 points after 90-minute of trade on Monday.

The stock market crash on Monday came as uninterrupted losses in the indices since last week. The global cues were also bearish.

The IT index was the worst among all the sectoral indices. The IT stocks took severe beatings after NASDAQ closed over two per cent lower on Friday in the US.

Bank Nifty also tumbled by over 580 points. Banking heavyweight HDFC Bank extended losses since last week to go further down by another one and a half percentage points.

Among large cap IT stocks, shares of Wipro were trading with cuts of more than three per cent. Shares of HCL Technology, LT Mind Tree, Infosys, and others were also bleeding on Monday.

After days of rebounding from 22780, Nifty finally gave up the crucial support. Analysts are warning of more pain after the major support was broken. The 50-share index had rebounded at least five times from the support last week.

Analysts said that Nifty had been trading in a narrow band. A close below that took place on Friday opened the channel on the downward path, they added.

The global supply chains disruptions on the back of reciprocal tariffs announced by US President Donald Trump are weighing high on market participants. Record outflow on accounts of the foreign institutional investors (FIIs) is also helping bears gaining control of the stock market.

Defensive stocks such as pharmaceutical majors were trading with minor gains. Shares of Dr Reddy Laboratory led the gains on the street. Shares of Cipla and Sun Pharma were also trading with gains.

The equity rout in the small and midcaps further extended on Monday. Shares of L&T Technology Services, Tejas Networks, Godfrey Phillip were trading with losses of more than five per cent on Monday.

Shares of exporters were particularly bleeding in the Monday session of trades. Shares of Rajesh Exports and Gokaldas Exports tumbled. The reciprocal tariffs announced by Trump are majorly reasons for export-oriented stocks taking severe beatings on the street.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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