Sensex Tanks 900 Points, Nifty Below 24,700 on Profit Booking; IT, FMCG, Financial Stocks Lead the Fall

The domestic stock market witnessed a sharp downturn on April 13, as both Sensex and Nifty ended the day in deep red, dragged down by heavy profit booking after Monday’s strong rally.

The Sensex plunged by 961 points, or 1.16%, touching an intraday low of 81,546.38, while the Nifty 50 slipped by 249 points, or 0.99%, to settle at 24,675.60. This pullback came on the heels of a significant uptrend seen earlier in the week, indicating that investors chose to book profits at higher levels.

Profit Booking Hits Market Sentiment

Monday’s rally was followed by a strong wave of profit booking, which dented market sentiment and led to widespread selling across sectors. Investors seemed cautious after the recent surge, triggering a sell-off that affected most indices on the board.

IT, FMCG, Financials, and Auto Stocks Under Pressure

The biggest drag on the market came from Nifty IT, FMCG, Financials, and Auto sectors, which were all among the key losers in today’s session. These sectors bore the brunt of investor exits as traders trimmed their positions.

Some of the major laggards in the Nifty included Infosys, HCL Technologies, Hindalco Industries, Power Grid Corporation of India, and ETERNAL, which saw a decline of up to 3%. The underperformance of these heavyweights added pressure on the indices, deepening the losses.

Sectoral Indices Reflect Weakness

The Nifty IT and FMCG indices particularly witnessed strong selling activity, indicating a shift in investor focus away from defensives and tech counters. The financial and auto sectors also failed to offer support, contributing further to the market’s downtrend.

“Nifty IT, FMCG, Financials, and Auto were among the key losers today, pulling the market lower despite a strong start to the week.”

What’s Next for the Markets?

While today’s fall might seem sharp, analysts believe that such corrections are healthy, especially after significant rallies. The market is expected to stay volatile in the short term as investors assess global cues, corporate earnings, and macroeconomic trends.

In conclusion, the sharp decline in Sensex and Nifty was primarily driven by profit booking, with key sectors like IT, FMCG, Financials, and Auto leading the losses. Investors are advised to remain cautious and closely monitor market trends in the coming sessions.