India's major market indices came under pressure from the opening bell on Wednesday, and the trend remained unchanged throughout the trading session in India’s stock market. Ultimately, the Sensex closed down by more than 500 points, while the Nifty 50 index also ended in the red. According to multiple reports, profit booking following the strong momentum seen in the previous session was one of the main reasons behind the decline.
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On Thursday, February 5, the BSE Sensex fell 503.76 points to close at 83,313.93. The NSE Nifty 50 index dropped 133.20 points to finish at 25,642.80. Bank Nifty also declined by 174.50 points, ending the session at 60,063.65.
Gainers and losers across indices
On the day, Trent emerged as the top gainer on the Nifty index, with its stock price rising by 2.96 percent. Other gainers included Avenue Supermarts, Adani Energy Solutions, IOCL, Max Healthcare, Divi’s Labs, Adani Green Energy, and Tata Steel, among several others.
Among the Nifty 100 stocks, Vedanta recorded the sharpest decline. Significant losses were also seen in Hindustan Zinc, HAL, Hindalco, Eternal, and Tata Power. The declining list further included Varun Beverages, Bharti Airtel, Bharat Electronics, Mazagon Dock Shipbuilders, Adani Power, ITC, and several other stocks.
Reasons behind the market decline
Explaining the fall, Vinod Nair, Research Head at Geojit Investments Limited, told the media that Indian markets were impacted following discussions related to India–US trade agreements. After this, consolidation was observed in equities. He added that following strong momentum in the indices, profit booking set in, which contributed significantly to the decline.
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Global market cues also played a role, with international market conditions affecting domestic indices. A selling trend was seen in technology stocks, adding pressure on the benchmarks. In particular, metals and small-cap stocks witnessed notable declines.
On the same day, gold and silver prices fell in international markets. As a result, multiple gold and silver ETFs listed in the stock market also saw sharp declines. Although these ETFs had risen in the previous session in line with higher precious metal prices, losses were recorded again on Thursday.
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