In Thursday's trading session, the Indian stock market witnessed a downturn, with the Sensex shedding 150 points and the Nifty slipping below the 25,800 mark. The day's trading was largely influenced by persistent concerns regarding the rupee's weakness, continuous foreign capital outflows, and delays in the anticipated India-US trade agreement.
Sectoral performance presented a mixed bag, with auto and pharmaceutical stocks facing significant headwinds. Several pharma stocks have fallen from their 52-week highs due to regulatory scrutiny, supply chain disruptions, and concerns about price erosion. Sun Pharma, a Nifty 50 constituent, experienced a decline of 2.38%, although its price remained above its 50-day, 100-day, and 200-day moving averages, indicating a long-term upward trend. Conversely, Processa Pharmaceuticals saw its stock surge after releasing promising Phase 2 data for its next-generation cancer therapy. In the auto sector, Bajaj Auto experienced a day change of -1.21%, with its stock opening at ₹8,882.05. The company's market capitalization stands at approximately ₹2,45,287.30 crores.
bucked the trend, surging 7%. Recently listed e-commerce company Meesho shares continued their strong post-listing rally. The stock was locked in its 20% upper circuit of ₹216.35 on BSE in intra-day deals. With the day's high, Meesho has now delivered a remarkable 95% gain over its IPO price. UBS initiated coverage on Meesho with a 'Buy' rating and a target price of ₹220. UBS expects Meesho's Net Merchandise Value (NMV) to grow at a 30% CAGR between FY25 and FY30, driven by a sharp increase in Annual Transacting Users (ATUs) from 199 million to 518 million.
Market analysts suggest a cautious approach, advising traders to book profits on any bounce. The Sensex is facing resistance near 84,900, with potential to drop to 84,000–83,800 if 84,300 is broken. Nifty has key support placed at 25,700-25,800.
Global cues also played a role in shaping market sentiment. S&P 500 futures rose 0.1%. Nikkei 225 futures (OSE) fell 1.3%.
Overall, the Indian stock market is expected to trade cautiously, as investors assess the impact of various domestic and global factors.
