Sensex falls 300 pts, Nifty below 24,250: Weak global cues among key factors behind market decline today

Sensex and Nifty snapped the seven-day rally on Thursday amid profit-booking.

Benchmark indices Sensex and Nifty snapped a seven-session winning streak on Thursday, closing lower as investors booked profits amid weak global cues and rising geopolitical tensions. Disappointing earnings from Hindustan Unilever also dented the sentiments. Caution ahead of the monthly expiry of April derivatives contracts further weighed on sentiment.

The BSE Sensex declined 315.06 points or 0.39 percent to settle at 79,801.43. The broader NSE Nifty fell 82.25 points or 0.34 percent to close at 24,246.70.

In the last seven sessions, Sensex had surged 6,269 points or 8.48 percent, while Nifty gained 1,930 points or 8.61 percent. The April derivatives series saw a 6 percent rise.

Among the key laggards on Thursday were Hindustan Unilever, Bharti Airtel, Eicher Motors, ICICI Bank and Eternal, which lost up to 4 per cent.

Market participants cited multiple factors behind the day’s fall, including subdued trends in Asian markets, weak earnings from FMCG majors, and renewed global uncertainty following comments from US Treasury Secretary Scott Bessent on the US-China trade negotiations.

Key factors behind market decline today

1) Geopolitical Tensions Add to Pressure: Investor sentiment was dented by fresh tensions between India and Pakistan. The Indian government announced suspension of the Indus Waters Treaty and closure of the Attari land transit post in response to the April 22 terror attack near Pahalgam in Jammu and Kashmir that killed 26 people, mostly tourists.

"Investor sentiment remained cautious, weighed down by rising geopolitical tensions between India and Pakistan in the wake of the Pahalgam terror attack," said Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity.

2) FMCG Dragged by Weak Earnings: FMCG heavyweight Hindustan Unilever Ltd (HUL) reported a 3.35 percent decline in its consolidated net profit at Rs 2,475 crore for the quarter ended March 2025. The company cited pressure on margins as a key factor. In response, HUL shares fell sharply during the day. Nifty FMCG was among the worst-performing sectoral indices, falling 1.16 per cent.

Nestle India reported a 6.5 percent decline in consolidated net profit at Rs 873.46 crore for March quarter of FY25 as the FMCG industry faced food inflation and moderation in urban consumption.

"FMCG majors’ Q4 results were weak, impacted by subdued volumes and margin pressure," said Vinod Nair, Head of Research, Geojit Financial Services.

3) Subdued trends in Asian markets: In Asian markets, South Korea's Kospi index and Hong Kong's Hang Seng settled lower. European markets were also quoting lower.

4) Wall Street Futures Decline: US equity futures were down ahead of the market opening in US. S&P 500 Futures slipped 0.39 percent, Nasdaq 100 futures dropped 0.47 percent and Dow Jones futures were down 0.48 percent, indicating a weak start.

5) Hopes of US-China trade deal fade: Sentiment was further hit after US Treasury Secretary Scott Bessent said there was no timeline for resolving the trade standoff with China. "President Trump has not made any unilateral offer to remove tariffs on Chinese goods," Bessent said. Earlier optimism had been driven by reports suggesting Washington was considering reducing some tariffs to revive talks.

“Global markets also came under pressure as expectations of a quick US-China trade resolution faded,” Nair added.

Technical View

From a technical perspective, the Nifty showed signs of fatigue after a strong rally.

"The index traded in a narrow range and closed on a flattish note,” said Rupak De, Senior Technical Analyst at LKP Securities. “If it sustains below 24,300, a minor correction cannot be ruled out. The index may slide towards 24,000 or even 23,900 in the near term, with resistance pegged at 24,300 and 24,500."

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