Nifty Plunges to Biggest Single-Day Decline Since June 2024, Suggests Follow-Up Selling on Friday

Indian Equity Benchmarks Fall 3% on March 19

Market Update

The Indian equity benchmarks experienced a significant decline on March 19, with the Nifty 50 falling 3.26% to 23,002.15 points and the BSE Sensex settling at 74,207.24. The decline marks the worst session since June 2024.

Key Drivers

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The fall was primarily driven by the abrupt exit of HDFC Bank's chairman and a surge in crude prices following attacks on Middle East energy facilities. The GIFT Nifty is suggesting a follow-up selling on March 20, with a 0.35% decline at 5:35 pm on March 19.

Sectoral Impact

Foreign portfolio investors offloaded stocks worth Rs 52,704 crore, with financials accounting for 60% of the total outflows. The Nifty 50 has dropped 8.1% for the first half of this month, with financials and banks plunging 9.8% and 11.2%, respectively.

Year-to-Date Performance

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The Nifty 50 and Sensex have dropped about 10% each so far this year, confirming a technical correction last week. Structurally, the index remains weak with a lower-high formation intact and momentum indicators remaining bearish.

Market Outlook

Analysts remain cautious on the market in the near term due to rapidly evolving geopolitical developments and sharp rise in crude prices. Volatility is expected to persist, with the India VIX surging above 20 (+21.79%) and signaling heightened volatility and risk aversion.