Nifty Falls Below 24,000, Sensex Crashes 900 Points: What’s Causing the Market Panic?
Indian stock markets opened the May series with a big fall. Sensex dropped 900 points and Nifty slipped below 24,000 as banking and midcap stocks saw heavy selling. Bears took over Dalal Street, wiping out ₹7.5 lakh crore in investor wealth. Global cues and geopolitical tensions added to the pressure.
11:10 AM Apr 25, 2025 IST
|
Aakash Khuman
The Indian stock market began the May series with a sharp fall on April 25. Both Nifty and Sensex opened in the red due to heavy selling in banking and midcap stocks. The Sensex dropped 900 points, while the Nifty slipped below the 24,000 mark.
Also Read: Stocks to Watch Today as Global Markets Signal Uptrend
Banking and Broader Markets Bleed
Banking stocks were the worst hit. Indices like Bank Nifty, Nifty Private Bank, and Nifty PSU Bank all fell sharply. Midcap and smallcap stocks also saw heavy losses, with Nifty Smallcap 100 down 3% and Nifty Midcap 100 falling by 2.5%.
Rs.7.5 Lakh Crore Investor Wealth Lost
As the market turned negative, investors saw a massive Rs.7.5 lakh crore wiped out from overall market value. Only around 436 stocks advanced, while over 2,700 declined.
Market Caution Due to Tensions
Investors are worried about the recent Pahalgam terror attack and how India might respond. The situation is making people cautious. Experts believe if the conflict doesn’t escalate, markets might stabilize. But overall, valuations are already high, and further growth may be limited.
Mixed Global Signals
Global cues are mostly positive. Wall Street saw a big rally after hopes that the U.S. might cut interest rates soon. Tech stocks performed well. Asian markets also opened strong on April 25, following gains in U.S. markets.
Key Levels to Watch in Nifty
Technical experts say Nifty has strong support near 23,800. If it holds this level, it might bounce back. On the upside, 24,400 is a resistance level.
Derivatives Indicate Bearish Signs
Options data shows that call writers (bearish traders) are increasing their positions. This shows caution in the market, and 24,500 is acting as a short-term ceiling, while 24,000 remains a strong support zone.
What to Expect in May?
The May series will be influenced by Q4 earnings, U.S. Fed (FOMC) decisions, and global developments. Also, any further tensions between India and Pakistan could impact investor sentiment in the short term.
Also Read: Will India get rid of tariffs? Big update on trade deal
Next Article