Indian stock markets experienced a significant downturn today. The benchmark Sensex index plummeted by nearly 600 points, closing at 73,294, while the Nifty index dropped by over 200 points to 22,242. This sharp decline resulted in investors losing a substantial amount of wealth, with the overall market capitalization shrinking by Rs 5.49 lakh crore.
Several sectors were particularly hard-hit by the sell-offs. The auto sector witnessed a steep plunge, with stocks such as PowerGrid, JSW Steel, Tata Steel, and Tata Motors leading the losses. Metal stocks also performed poorly, with NTPC and HCL Tech among the top decliners. Capital goods stocks faced a similar fate, with IndusInd Bank and Titan taking substantial hits. Consumer durables stocks were also under pressure, with Axis Bank facing significant losses.
In terms of individual stocks, over 160 companies hit their 52-week lows on the BSE. In contrast, only 948 stocks managed to trade in the green, while 2677 stocks ended the day in the red.
Foreign institutional investors contributed to the market’s decline by selling a net Rs 2168 crore worth of equities. Domestic investors, on the other hand, purchased Rs 781.39 crore of shares.
The broader market also experienced a downward trend, with the BSE midcap index shedding 700 points and the smallcap index falling by 732 points.
The reasons behind the market’s plunge are multifaceted. Global economic uncertainties, rising interest rates, and geopolitical tensions have all contributed to investor concerns. The upcoming Lok Sabha elections may also be playing a role in the market’s volatility.
Analysts believe that the market may continue to face challenges in the near term. However, they advise investors to remain patient and focus on long-term investments. They also recommend diversifying portfolios to mitigate風險 (risk).
