Market mayhem: Sensex nosedives over 1,000 Points, Nifty below 24,400; Rs 2.9 lakh crore investor wealth lost
Market mayhem: Sensex nosedives over 1,000 Points, Nifty below 24,400; Rs 2.9 lakh crore investor wealth lost
In a dramatic trading session, Indian equity benchmarks took a steep dive, with the BSE Sensex falling over 1,000 points and the NSE Nifty slipping below the 24,400 mark. At 12:11 PM, the Sensex was down 1,005 points or 1.23%, resting at 80,744. Meanwhile, the Nifty was down 286 points or 1.16%, positioned at 24,382. This significant decline resulted in a loss of approximately Rs 2.9 lakh crore in market capitalization on the BSE.
Key Contributors to the Market Fall
Frontline stocks including HDFC Bank, Bharti Airtel, Reliance Industries Ltd (RIL), ICICI Bank, Larsen & Toubro (L&T), Tata Consultancy Services (TCS), and Mahindra & Mahindra were the primary drivers of today’s market drop.
Market Sentiment and Global Factors
The plunge in Indian markets is attributed to a broad-based selloff in banking, financial, automobile, IT, and energy stocks. Investors are also anxiously awaiting the outcome of the ongoing two-day US Federal Reserve meeting, which is expected to provide crucial insights into the economic outlook. "Globally, markets are eyeing the FOMC outcome on Wednesday. A 25 basis points rate cut is already anticipated, so the focus will be on the Fed chief's commentary. Any deviation from a dovish stance could negatively impact the markets," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Today's Market in Numbers
Rs 2.9 Lakh Crore Investor Wealth Erased
Investor wealth, as indicated by the BSE market capitalization, dropped by Rs 2.97 lakh crore to Rs 457.08 lakh crore, compared to Rs 460.06 lakh crore in the previous session.
Stocks Hitting New Lows and Highs
Fifteen stocks hit their 52-week lows today, including Prince Pipes and Fittings Ltd and Tata Technologies Ltd. However, 250 stocks managed to reach their one-year high levels.
Market Breadth
Of the 4,002 stocks traded, 2,194 stocks ended in the red, 1,685 stocks advanced, and 123 stocks remained unchanged.
Sector Performance
Shares of Shriram Finance Ltd, HEG Ltd, Blue Star, Pidilite Industries, Patanjali Foods, Gujarat Ambuja Exports, Jindal Saw, Finolex Cables, Bharti Airtel, and ONC Infra fell by up to 3.36%. Conversely, stocks such as Quess Corp Ltd, CSB Bank, Piramal Pharma, Jyoti CNC Automation, Rashtriya Chemicals and Fertilizers Ltd, Craftsman Automation Ltd, Suzlon Energy, Five-Star Business Finance Ltd, and Mazagon Dock Shipbuilders Ltd saw gains of up to 8.70%.
Top Drags
On the Sensex, HDFC Bank, Bharti Airtel, and Reliance Industries were the major contributors to the decline, collectively accounting for a 331-point drop. On the NSE, 11 out of 16 sub-indices were down, with Nifty Bank, Nifty Financial Services, Nifty Auto, Nifty IT, and Nifty Oil & Gas witnessing significant losses.
Disclaimer: Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.