Stock Market Crash: Indian equity investors saw over Rs 10.3 lakh crore of wealth wiped out on Thursday as benchmark indices came under heavy selling pressure yet again, with the BSE Sensex plunging over 1,000 points and the Nifty50 slipping below the 22,300-mark.
The combined market capitalisation of BSE-listed companies fell to Rs 4,62,69,756.69 crore, from Rs 4,73,09,634.31 crore at Tuesday's close, translating into a decline of around Rs 10,39,877.62 crore or Rs 10.39 lakh crore.
The BSE Sensex tumbled as much as 1.39%, or 1,012.84 points, to an intraday low of 71,467.45, while the Nifty50 fell as much as 1.53%, or 346.8 points, to 22,273.65.
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The sell-off was broad-based, with mid- and small-cap stocks also witnessing sharp declines.
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Why Is The Stock Market Falling Today?
Chokkalingam G, Founder and Head of Research at Equinomics Research, attributed the weakness to liquidity constraints.
"Liquidity constraint is the major reason. IPOs have chucked out a lot of funds from domestic retail investors. FPIs are also selling as oil prices remain firm and rupee is quite weak. Unless oil prices fall significantly or boom in IPOs fizzle out secondary market is likely to remain weak in the short term," he said.
Sensex Top Losers
Of the 30 stocks on the BSE Sensex, 26 were trading in the red, while only four advanced.
Bajaj Auto emerged as the biggest loser, falling 6.42%, followed by M&M, down 4.18%, and Maruti Suzuki, which declined 4.07%.
Other major losers included Tata Steel (-3.76%), UltraTech Cement (-3.03%), ITC (-2.73%), Hindustan Unilever (-2.64%), Bharat Electronics (-2.63%), Trent (-2.37%) and Larsen & Toubro (-2.28%).
Among the four gainers, HDFC Bank rose 0.80%, Kotak Mahindra Bank gained 0.65%, Infosys advanced 0.57%, while HCL Technologies was up 0.41%.
Nifty50 Top Losers
The sell-off was equally broad-based across the Nifty50, with 42 stocks declining and only eight advancing.
Bajaj Auto (-6.42%), M&M (-4.18%), Maruti Suzuki (-4.07%), Tata Steel (-3.76%) and UltraTech Cement (-3.03%) were among the biggest drags.
On the other hand, Kotak Mahindra Bank (+1.13%), HDFC Bank (+1.10%) and Infosys (+0.69%) were among the notable gainers.
Broader Market
The broader market also came under major selling pressure.
- Nifty 100: Down 1.39%
- Nifty 200: Down 1.43%
- Nifty 500: Down 1.55%
- Nifty Midcap 50: Down 1.54%
- Nifty Midcap 100: Down 1.60%
- Nifty Smallcap 100: Down 1.95%
- Nifty Midcap 150: Down 1.71%
- Nifty Smallcap 50: Down 1.93%
The India VIX, a measure of expected market volatility, jumped 13.25% to 15.28, signalling a sharp increase in nervousness among investors.
BSE Advance-Decline Ratio
The breadth of the market remained firmly negative on the BSE.
Of 4,416 stocks, 1,012 advanced, while 3,161 declined, indicating widespread selling across the market.
NSE Advance-Decline Ratio
The NSE also witnessed a weak market breadth. Of 3,485 stocks traded, 616 advanced, 2,774 declined and 95 remained unchanged.
The sharp decline in both benchmark and broader-market indices, coupled with the rise in India VIX, pointed to heightened risk aversion across the equity market.
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