Sensex Slumps Over 900 Points By 1 PM, Nifty Nears 22,300 As Auto Stocks Lead Sell-Off

Mumbai witnessed a steep fall in Indian equity markets during midday trading on Thursday, with the Sensex dropping over 900 points and the Nifty nearing 22,300 around 1 PM. Speculative selling began after the markets opened on a weak note, with auto sector stocks bearing the brunt of the decline. The Nifty Auto index slipped nearly 4%, while media and metal stocks also faced heavy sell-offs.

Major sectoral indices traded lower, though the Nifty IT index managed to stay in positive territory. Bajaj Auto saw a steep decline of more than 6% around 12:45 PM. Some support was provided by Kotak Mahindra Bank and HDFC Life, which traded more than 1% higher at that time. Persistent foreign fund outflows continued to pressure the markets, as foreign institutional investors sold Indian equities worth ₹10,148.41 crore on Wednesday, while domestic institutional investors bought shares worth approximately ₹11,271 crore during the same session.

Despite these gains, the sustained overseas selling kept investors on edge. The sharp fall in auto stocks, coupled with rising US bond yields and a weakening rupee, exacerbated the broader decline. The Nifty's midday decline took it below the 22,500-22,550 support range identified by analysts, marking a further deterioration from its morning levels.

The index approached 22,300, a level that would require a sustained recovery above 22,800-22,900 to generate positive sentiment. The Sensex closed at 72,480.29, while the Nifty ended at 22,620.45. The market losses persisted for the third consecutive session, with crude oil prices adding to the bearish sentiment.