Stock Market Today: The Indian stock market registered a huge decline on Thursday, creating panic among investors. Both Sensex and Nifty ended the trading in red, while midcap and smallcap stocks showed some stability.

Big fall of Sensex-Nifty

The Sensex closed at 79,043.74, down 1,190.34 points or 1.48%. Similarly, the Nifty fell 360.75 points or 1.49% to 23,914.15. This decline in the market was mainly due to selling in IT and auto sector stocks.

The IT sector became the center of decline.

The IT sector suffered the most in Thursday's decline. The Nifty IT index fell by more than 2% and closed at 42,968.75.

According to experts, heavy selling in the US markets overnight and uncertainty over interest rates put pressure on IT stocks. The fall in big stocks like Infosys and TCS affected the entire sector.

Midcap and Smallcap showed strength..h

While there was a sell-off in large-cap stocks, mid-cap and small-cap indices showed stability.

• Nifty Midcap 100 rose 28.40 points or 0.05% to close at 56,300.75.
• Nifty Smallcap 100 rose 8.70 points or 0.05% to close at 18,511.55.

This shows that investors continued buying small and mid-cap stocks.

Buying in PSU banks and realty

Although most sectors were under pressure, PSU banks and realty sectors performed better. Investors looked for opportunities in these sectors.

What are the reasons behind the decline?

Economic uncertainty in the lack of clarity on interest rate cuts by the US Federal Reserve created volatility in global markets.

Geopolitical tensions

Donald Trump's policies and the global scenario weakened the investors' sentiment.

Institutional investors have a mixed stance.

Foreign institutional investors (FIIs) made net purchases of Rs 7.78 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,301.97 crore.

What could be the way forward?

Experts believe that global signals need to be positive for the market to stabilize. There may be opportunities for investors in midcap and small-cap stocks. However, it is important to remain cautious in the short term.

It is worth noting that this decline is a warning that investors should take careful steps keeping in mind the current market conditions.