Sensex Today | Stock Market LIVE Updates: Sensex slips 700 pts, Nifty nears 23,200; all sectors in the red - Moneycontrol.com

Indian equity benchmarks extended losses in afternoon trade on Tuesday, with the Sensex plunging 700 points and the Nifty50 slipping to near the 23,200 mark. Selling pressure was broad-based, with all sectoral indices on the NSE trading in negative territory. The fall comes amid weak global cues and persistent foreign fund outflows, analysts say. The Sensex was down 700 points, or over 0.9%, while the Nifty50 hovered around 23,200, down nearly 200 points from its previous close. Market breadth remained heavily tilted in favour of declines, with more than two stocks falling for every one that advanced on the BSE.

All sectors were in the red, with metal, realty, and banking stocks among the worst hit. The Nifty Metal index fell over 2%, while Nifty Realty and Nifty PSU Bank declined more than 1.5% each. IT and pharma stocks also came under pressure, with the Nifty IT index down over 1%. Analysts attribute the sell-off to a combination of factors, including a surge in US bond yields, a stronger dollar, and concerns over global growth. Foreign institutional investors (FIIs) have been net sellers in Indian equities for the past few sessions, adding to the downward pressure. Domestic institutional investors (DIIs), however, have been providing some support, buying stocks on dips.

"The market is in a corrective phase, and the fall is largely driven by global factors. Investors should avoid panic selling and instead focus on quality stocks with strong fundamentals," analysts say.

Among the Sensex pack, major losers included Tata Steel, JSW Steel, and IndusInd Bank, each falling over 2%. Other prominent decliners were HDFC Bank, ICICI Bank, and Reliance Industries, which dropped over 1% each. On the other hand, only a handful of stocks managed to stay in the green, including Nestle India and Hindustan Unilever, which were marginally up. In the broader market, the BSE Midcap and Smallcap indices fell over 1.5% each, underperforming the benchmarks. The volatility index, India VIX, surged over 8%, indicating heightened fear among investors.

Technically, the Nifty50 has broken below its immediate support level of 23,300 and is now approaching the next crucial support at 23,100. If the index sustains below this level, further downside towards 22,800 cannot be ruled out, analysts say. On the upside, the 23,500-23,600 zone is likely to act as a strong resistance. The Relative Strength Index (RSI) on the daily chart is hovering around 35, suggesting the market is nearing oversold territory. However, a clear reversal signal is yet to emerge. Investors are advised to keep a strict stop-loss and avoid leveraged positions in this volatile environment.

Globally, Asian markets were trading lower, with Japan's Nikkei down over 1% and Hong Kong's Hang Seng falling over 1.5%. US futures were also pointing to a weak opening, with Dow Jones futures down over 200 points. The US 10-year Treasury yield rose to 4.5%, its highest level in over a month, which is putting pressure on equity valuations. Crude oil prices edged higher, with Brent crude trading above $85 per barrel. The rupee weakened to 83.50 against the US dollar, adding to the negative sentiment. Analysts say that the market is likely to remain volatile in the near term, and investors should wait for stability before making fresh commitments.

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