Domestic stock markets experienced a sharp decline on Thursday, with major indices taking a significant hit. The uncertainty surrounding the general election and disappointing Q4 results dampened investor sentiment, leading to heavy losses. The Sensex fell over 1,000 points while the Nifty dropped below the 22,000 mark. The market downturn wiped out Rs.6 lakh crore in investor wealth, bringing the total value of BSE-registered companies down to Rs.393 lakh crore.
The Sensex opened in negative territory at 73,499.49 points, down from its previous close of 73,466.39 points, and continued to fall throughout the day. The index hit an intraday low of 72,334.18 before closing at 72,404.17, a loss of 1,062.22 points. The Nifty also plummeted by 345 points to settle at 21,957. Meanwhile, the rupee weakened to 83.51 against the dollar.
Only a handful of stocks, including Tata Motors, Mahindra and Mahindra, State Bank of India, Infosys, and HCL, managed to stay afloat, while major heavyweights like HDFC Bank, L&T, Reliance Industries, and ITC contributed to the market’s decline. Additionally, the price of Brent crude oil inched up to 84.16 dollars.
Market analysts attribute the downturn to several factors, including investor uncertainty due to the ongoing general election and lackluster Q4 earnings. The usual excitement surrounding elections appears to have waned, with investors questioning polling patterns and outcomes. Internationally, the absence of positive signals added to the market’s woes.
The rising Volatility Index India (VIX), a key indicator of market sentiment, surged to 18 percent, indicating a more turbulent period ahead. With selling pressure from foreign institutional investors and key stocks dragging the indices down, experts suggest that investors are preparing for a rocky ride in the days ahead.
