Sensex Plummets, Investors Lose Rs 4 Lakh Crore

In a significant downturn, Indian stock markets experienced massive upheaval, leading to a sharp decline. The S&P BSE Sensex plummeted by 1,272.07 points, closing at 84,299.78. The NSE Nifty50 also settled lower, down by 361.65 points at 25,810.85.

During Monday’s trading session, profit booking by investors triggered this significant drop. Heavy selling in sectors like information technology (IT) and financial services heavily impacted the market.

A notable decline of over 3% in blue-chip Reliance Industries Limited (RIL) further exacerbated the market situation. The combined market capitalization of BSE-listed companies shrank by over Rs 4 lakh crore.

All other broader market indices also fell sharply during today’s trading session, with volatility spiking. Banking, financial, and IT stocks were among the biggest losers, while metal stocks gained.

The top five gainers on the Nifty50 included JSW Steel, NTPC, Hindalco, Britannia, and Tata Steel. Conversely, the top losers were Hero MotoCorp, Axis Bank, Trent, Reliance, and BEL.

Vinod Nair, Head of Research at Geojit Financial Services, stated, “Global markets turned topsy-turvy under the threat of rising geopolitical risks in the Middle East and a plausible increase in Yen interest rates, which could reduce cross-country investments in equity.”

“Conversely, the Chinese market had a resurgence due to a large stimulus package and cheap valuations. India also weakened under global pressure and premium valuations, while metals are expected to outperform in the near term.”

“Looking ahead, domestic focus will be on the upcoming Q2 results, where earnings growth is expected to revert after a dull Q1.”

Aakhir Tak Editor-in-Chief

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