The domestic stock market ended with heavy losses as major indices plummeted due to profit-booking at market highs and a withdrawal of foreign investments. Shares of key players such as Reliance, ICICI, HDFC, and Axis Bank came under significant selling pressure, contributing to the sharp decline. The Sensex dropped over 1,200 points, while the Nifty fell below the 26,000 mark, closing at 25,800. Investors’ wealth took a substantial hit, with about ₹3.5 lakh crore evaporating, bringing the total market capitalization of BSE-listed companies to ₹474.4 lakh crore.
The Sensex, which opened at 85,208.76 (previous close: 85,571.85), faced continuous losses throughout the day. The index reached an intraday low of 84,257.14 before closing at 84,299.78, down by 1,272.07 points. Similarly, the Nifty lost 368 points, settling at 25,810.85. In currency markets, the rupee depreciated by 10 paise to trade at ₹83.80 against the dollar. While most sectors faced losses, JSW Steel, NTPC, Tata Steel, Titan, and Asian Paints were the only stocks to post gains within the Sensex 30 index. On the other hand, Reliance, Axis Bank, ICICI Bank, Nestle India, and Tech Mahindra were among the biggest losers.
In the international market, Brent crude oil is trading at $71.64 per barrel, and gold continues to hold steady at $2,669 per ounce.
Key Factors Behind the Market Decline:
- Foreign Investor Withdrawal: Recent measures by the Chinese government to stimulate economic growth have attracted foreign investments, which led to a strong performance in the Shanghai and Hong Kong markets on Monday. This shift of capital negatively impacted Indian markets.
- Geopolitical Tensions: Escalating conflicts in West Asia, particularly Israel’s attacks on Lebanon, have made global investors more cautious, leading to market instability.
- Profit-Booking: After the Federal Reserve’s announcement of an interest rate cut, markets surged. However, investors have since opted to take profits at market highs, which added to the selling pressure.
