Market volatility rattles sensex and nifty as auto sector suffers.

On July 10, the Indian stock markets saw great volatility as general-based selling pressure affected all sectors. Driven by a rally in Maruti Suzuki, the market saw a selloff in banking stocks and Mahindra & Mahindra (M&M) following the Sensex and Nifty indices reaching fresh lifetime highs in early trade. Comments from Federal Reserve Chairman Jerome Powell, suggesting the likelihood of protracted higher interest rates, helped to aggravate the selloff.

The Sensex sank 570 points, or 0.71%, to 79,781 by lunchtime; the Nifty down 160 points, or 0.66%, to 24,272. With 2,366 stocks down against 956 advancing and 90 unchanged, the total market breadth was negative. Measuring near-term volatility, the India VIX rose by nearly 3% to trade around the 14 level as well.

Every industry was in the red; Nifty Auto was the worst, falling almost 2%. This was mostly caused by major share losses in M&M, Tata Motors, and Bajaj Auto. Other industries, like Nifty Metal and Nifty PSU Bank, likewise had drops over 1%.

Chief Investment Strategist at Geojit Financial Services VK Vijayakumar cautioned about the great degree of speculative activity in the small-cap market, where operators are driving up stock prices with minimal floating value. He underlined that the Federal Reserve’s decisions in September will depend much on the next inflation figures from the US, scheduled on July 11.

Shrey Jain, SAS Online’s Founder and CEO, kept a good view of Nifty in front of the market collapse, predicting a movement towards the 24,550–24,600 region. He called 24,300 a significant support level.

Among noteworthy stock changes, M&M was the top Nifty 50 loss, plunging over 6% following low demand-driven price cuts on its best-selling SUV. Lloyd Metals dropped 2% following their 52-week high the day before. Following dismal quarterly results linked to increased GST rates, general elections, and seasonal influences, Delta Corp fell more than 4%.

Profit booking at higher levels also had an impact on the wider market drop as investors were mindful of stretched values and cautious ahead of Q1 outcomes. Mixed signals from a global market added to the wary attitude Though overnight advances on Wall Street, Asian markets responded differently, and statistics on inflation from China and Japan revealed different economic pressures.

All things considered, the Indian stock markets had a difficult day with general sectoral selling pressure. Concerns about global economic circumstances, profit booking, and market caution ahead of next economic data and business earnings announcements drove the volatility.