Indian equity markets experienced a significant decline on Thursday, with key indices like Sensex and Nifty plummeting. The BSE Sensex dropped 823.16 points to close at 81,691.98, while the NSE Nifty50 fell 253.2 points to settle below 25,000 at 24,888.20.
The broader markets also underperformed, with Nifty Midcap100 and Nifty Smallcap100 indices slipping by 1.73% and 1.90%, respectively. All sectoral indices ended in the negative zone, with Nifty Realty being the worst performer, down by 2.02%.
Among the Sensex constituents, 27 out of 30 stocks ended in the red, with Tata Motors, Titan, Power Grid, and others being the top laggards. The market sentiment was affected by weak global cues, geopolitical tensions, and high market volatility as indicated by the India VIX.
The decline in the market led to a substantial loss in investor wealth, with the total market capitalisation of BSE-listed companies decreasing by nearly Rs 5 lakh crore in a single trading day.
Reasons Behind the Market Fall:
- Escalating Geopolitical Tensions: Renewed tensions in the Middle East between the US and Iran contributed to the global market unrest.
- Uncertainty Over US-China Trade Deal: The lack of a comprehensive trade agreement between the US and China added to investor concerns.
- Global Markets Weaken Amid Risk-Off Mood: Tepid US inflation data, trade worries, and geopolitical tensions led to losses in global equities.
- Dollar Slides as Fed Rate Cut Bets Rise: Expectations of rate cuts by the Federal Reserve weakened the US dollar.
- Oil Price Volatility Adds to Market Jitters: Crude oil prices fluctuated due to escalating tensions in the Middle East, impacting oil-importing countries like India.
Overall, the market downturn was influenced by a combination of global factors, leading to a challenging trading day for investors.
Source: News18
