Sensex today tumbles nearly 873 points, dragging the index back toward the 80,000 zone

The Sensex today tumbled nearly 873 points intraday, dragging the index back toward the 80,00 zone after bulls failed to break through the 82,300 resistance.

The Indian stock market is sliding today, but don't panic—it's not one big event spooking investors. Rather, traders are booking profits after a stellar May rally, while global cues aren't offering much support.

As of 12:30 PM IST, the Sensex fell nearly 873 points to the 81,000 zone, snapping a five-day winning streak. The Nifty also slid below the 24,750 level.

Get insights on bank stocks and IT stocks in the Mid-Day Market Summary on ETMarkets.com.

The broader market crash today isn't a collapse; it's a technical correction after a strong rally. And with the Sensex today pulling back from resistance and momentum fading, this might be the pause that refreshes or the start of a deeper downturn.

Either way, watch the 81,000 zone closely. If that cracks, the market could slide further before bulls return.

Here's a glance at what went down in early trade today:

• The Sensex fell 869.24 points or 1.06% to 81,001.64 and the Nifty decreased 544.49 points or 2.14% to 24,744.3.

• The broader market also saw selling pressure, with all fifteen sectors slipping into the red.

• Among individual stocks, Tech Mahindra saw the biggest decrease of over 3%.

• The bank stocks, which had been performing well recently, faced selling pressure today.

• The Indian stock market is known for its volatility, especially in the current economic climate.

This structure doesn't scream panic, but it does suggest bulls are tiring near key resistance.

With upcoming GDP and inflation readings likely to keep volatility high, traders may prefer staying light-footed. Meanwhile, investors can use any dips to buy into stocks for the long term.

The world bank has cut its global economic growth outlook for this year due to persistent inflation, a war in Ukraine, and a sluggish recovery in China.

The Indian stock market had a strong rally in May, with the Sensex and Nifty both hitting new all-time highs of 82,317.8 and 25,314.7, respectively. However, the market failed to break through the 82,300 resistance, which led to selling pressure.

The sudden drop in the market spooked investors and triggered broad-based selling, particularly in banking and IT stocks.

The bank stocks, which had been performing well recently, faced selling pressure today after a strong rally.

The IT stocks, which are a major component of the Indian stock market, also saw some of the heaviest selling.

The selling pressure was so heavy that it dragged the Sensex back toward the 81,000 zone and the Nifty below 24,750.

The Indian stock market is known for its volatility, especially in the current economic climate.

The stock market is expected to remain volatile in the coming days as investors react to the latest economic and political developments.

The market will be closely following the upcoming GDP and inflation readings, which are expected to provide further clues about the health of the Indian economy.

Despite the recent sell-off, the Indian stock market is still trading at relatively high valuations. This could limit the upside potential for stocks in the near term.

However, the long-term outlook for the Indian stock market remains positive, given the country's strong economic growth prospects and supportive government policies.

Investors who are planning to invest in the Indian stock market should focus on high-quality companies with sustainable business models and strong management teams. They should also consider investing for the long term to maximize their returns.

In the short term, traders may prefer to stay light-footed and use any dips to buy into stocks for the long term.

With the Sensex today pulling back from resistance and momentum fading, this might be the pause that refreshes or the start of a deeper unwind. Either way, watch the 81,000 zone closely. If that cracks, the market could slide further before bulls return.

Stay tuned to Benzinga for more banking and IT stocks news.

This article is written with the assistance of AI.

The post Indian Stock Market Crash Today: Is This The Start Of A Deeper Correction? appeared first on Benzinga.

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Benzinga's Take: The Indian stock market is sliding today as traders book profits after a stellar May rally, while global cues aren't offering much support.

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