The Indian stock market experienced a significant downturn today, with the Sensex plummeting approximately 500 points and the Nifty falling below the critical 25,000 mark. The broad-based selling pressure affected nearly all sectors, painting a grim picture for investors.
At approximately 9:19 am, the BSE Sensex was down by 580 points, trading at 81,828.11, while the NSE Nifty50 fell over 175 points to 24,937.25. The S&P BSE Sensex further declined by 595.51 points to 81,812.66, and the NSE Nifty lost 182.90 points to 24,929.50 as of 9:23 am. Broader market indices mirrored this downward trend, with volatility indicators jumping sharply, suggesting a potentially turbulent trading session ahead.
Several factors contributed to this market slump. Globally, investor sentiment remained cautious. Concerns are rising due to limited clarity of US-China trade deal, which leaves the door open for renewed tariff tensions. This uncertainty dampened enthusiasm and triggered selling across various counters.
Examining sectoral performance, media and pharma stocks experienced gains, while all other sectoral indices traded in the red. Within the Nifty50 index, Bajaj Finserv, Wipro, Apollo Hospitals Enterprise, Tech Mahindra, and Oil and Natural Gas Corporation were among the top gainers. Conversely, Tata Motors, Tata Steel, Shriram Finance, Coal India, and Hindustan Unilever were the major losers, highlighting the widespread nature of the sell-off.
Specific stock movements revealed further insights into the market's behavior. Canara Bank shed 0.26% after announcing a 50 basis points reduction in its Repo Linked Lending Rate, bringing it down from 8.75% to 8.25%, aligning with the Reserve Bank of India's recent repo rate cut. Shakti Pumps India, however, advanced 3.60% after securing a letter of award worth Rs 114.58 crore from the Maharashtra Energy Department Agency. Sterlite Technologies (STL) surged 14.27% following a Rs 2,631 crore contract from BSNL for building and maintaining the middle-mile network under BharatNet in Jammu & Kashmir.
Global cues also played a role in shaping domestic market sentiment. Asian stocks traded mixed as investors reacted to U.S. President Donald Trump's statement that a trade agreement with China was 'done,' pending final approval from both himself and Chinese President Xi Jinping. Concerns about potential military actions further weighed on investors' minds. Reports suggested the United States may have bombed a nuclear facility in Iran, triggering fresh concerns over the conflict with Israel.
In the broader market, the S&P BSE Mid-Cap index fell 0.86%, and the S&P BSE Small-Cap index shed 0.63%, indicating that the decline was not limited to large-cap stocks. Market breadth was negative, with 1,581 shares rising and 2,297 shares falling on the BSE. The NSE's India VIX, a gauge of market volatility expectations, rose 0.91% to 13.79, reflecting increased investor anxiety.
Adding to the negative sentiment, the Gift Nifty futures, as of 8:10 am, were trading at 25,015, indicating a lower opening compared to the previous close of 25,112.4.
This downturn follows a period of gains, with benchmark indices rising about 1.6% last week, driven by financial stocks. However, escalating geopolitical tensions have eroded those gains, leading to the current market correction.
Disclaimer: I am an AI chatbot and cannot provide financial advice. This article is for informational purposes only. Please consult a financial advisor before making any investment decisions.
