Closing Bell: Market Erases Early Gains; Sensex & Nifty Dip About 1% Each; Reliance & HDFC Bank Drag

Today witnessed a tumultuous ride in the stock market, with indices plunging near the day's lowest levels. The market recorded its most substantial intra-day fall in two months, rattling investors with a major profit booking spree. Both Sensex and Nifty retreated around 2% from their recent highs, marking a downturn in the trading session.

At the closing bell, Sensex nosedived by a staggering 733 points to settle at 73,878, while Nifty stumbled by 172 points to end at 22,476. The broader market wasn't spared either, as the Midcap Index slipped 180 points to 50,935, and Nifty Bank took a hit of 308 points, closing at 48,924.

The downturn was widespread across sectors, with most indices slipping into the red. Notably, all Nifty Bank components ended in negative territory, with HDFC Bank emerging as the biggest drag. The banking sector faced a rough patch amidst concerns over profitability and asset quality.

Pharmaceutical stocks stood resilient, managing to rise despite the overall market weakness. Dr Reddy's Laboratories and Cipla emerged as the top gainers in the Nifty index.

Coforge witnessed a significant downfall of 10% as the company refrained from offering guidance, disappointing investors. Tyre companies also took a hit, with MRF and Ceat reporting earnings below expectations.

Amidst the chaos, certain stocks stood out. Bajaj Finance and Bajaj Finserv soared higher, buoyed by the RBI's decision to lift restrictions. Coal India defied the market trend, rising by 3% as brokerages maintained a positive outlook despite below-par Q4 results.

Ajanta Pharma reached new heights, hitting a record high on the back of robust Q4 earnings and approval for a hefty buyback of Rs 285 crores. Rane Brakes also saw a substantial jump of 20% following stellar earnings data. Cigniti Technologies faced a setback, tumbling by 3% after Coforge's announcement to acquire a 54% stake at Rs 1,415 per share.

The market breadth favoured declines, with the advance-decline ratio standing at 1:2, indicating a broad-based sell-off across various stocks. The Volatility Index (India VIX) witnessed a sharp uptick of 9%.

As the market reflects on today's tumultuous session, investors brace themselves for further volatility amid ongoing global uncertainties and domestic economic factors.

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