Nifty, Sensex Log Worst Session Since June 4 As M&M Drags: Market Wrap

The benchmark equity indices logged their worst session since June 4 after hitting respective highs at open on Wednesday as shares of Mahindra & Mahindra Ltd. fell nearly 7%.

The NSE Nifty 50 closed 108.75 points or 0.45%, lower at 24,324.45, while the S&P BSE Sensex ended 426.87 points or 0.53%, lower at 79,924.77.

In early trade, the Nifty rose 0.11% to an all-time high of 24,461.05, while the Sensex went 0.16% up to hit its highest level of 80,481.36. During the day, the Nifty and the Sensex dropped as much as 1.19% and 1.14% to 24,141.80 and 79,435.76, respectively.

"On the daily chart, the index (Nifty) has made a bearish engulfing candlestick pattern at the record levels, which indicates a potential reversal of the trend," Aditya Gaggar, director of Progressive Share Brokers, said.

A convincing move below 24,200 will confirm a short-term trend reversal. Till then, the uptrend will remain intact, while 24,460 will be considered an immediate hurdle, according to Gaggar.

Shares of M&M, HDFC Bank Ltd., Tata Consultancy Services Ltd., ICICI Bank Ltd., and Reliance Industries Ltd. dragged the Nifty the most.

Asian Paints Ltd., Bharti Airtel Ltd., NTPC Ltd., Power Grid Corp., and Grasim Industries Ltd. cushioned the fall.

Most sectoral indices on the NSE closed lower, with the Nifty Auto, Media and Metal falling the most.

The broader markets ended lower as the BSE MidCap and the SmallCap settled 0.19% and 0.69% lower respectively.

Sixteen out of the 20 sectors on the BSE declined, with Auto falling the most, while the S&P BSE Utilities rose the most.

The market breadth was skewed in favour of the sellers as 2,596 stocks declined, 1,336 advanced and 82 remained unchanged on the BSE.