Stock market today: BSE Sensex and Nifty50 crash on Wednesday led to investors losing a significant amount of money. The BSE Sensex, influenced by weak global trends and a drop in bank stocks, plummeted by 1,628 points. This decline extended from the previous day, with the Sensex settling at 71,500.76, marking a 2.23% decrease. Intraday, the 30-share index reached a low of 71,429.30, falling by 2.32%.
This decline in the equity markets led to a reduction of Rs 4,59,327.64 crore in the market capitalization of BSE-listed companies, bringing it down to Rs 3,70,35,933.18 crore, according to a PTI report.Over the course of two days, investors’ wealth decreased by Rs 5,73,576.83 crore.
The decline in the Indian stock market can be attributed to hawkish comments made by the US Federal Reserve, which caused a spike in yields on US 10-year bonds and the US dollar index. This, in turn, had a negative impact on European and Asian markets, including India. Additionally, India’s stock market valuations are relatively high compared to other global stock indices, leading investors to wait for more positive cues before increasing their equity exposure. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., highlighted the challenges in the near-term, such as ongoing conflicts in the Middle East and concerns over a delay in the US Fed rate cut, which could further dampen investor sentiment.Among the companies listed on the Sensex, HDFC Bank experienced a significant drop of over 8% in its stock price following disappointing earnings in the December quarter. Other major laggards included Tata Steel, Kotak Mahindra Bank, Axis Bank, ICICI Bank, JSW Steel, Bajaj Finserv, State Bank of India, and IndusInd Bank. On the other hand, HCL Technologies, Tata Consultancy Services, Infosys, Tech Mahindra, Titan, Nestle, and PowerGrid saw gains.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., attributed the decline in domestic equities to a weak global environment, the selloff in HDFC Bank, hawkish comments from the US Federal Reserve, escalating tensions in the Middle East, and a spike in bond yields, all of which negatively affected investor sentiment.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong also experienced declines. European markets were trading with significant losses, and the US markets ended in negative territory on Tuesday.
This decline in the equity markets led to a reduction of Rs 4,59,327.64 crore in the market capitalization of BSE-listed companies, bringing it down to Rs 3,70,35,933.18 crore, according to a PTI report.Over the course of two days, investors’ wealth decreased by Rs 5,73,576.83 crore.
The decline in the Indian stock market can be attributed to hawkish comments made by the US Federal Reserve, which caused a spike in yields on US 10-year bonds and the US dollar index. This, in turn, had a negative impact on European and Asian markets, including India. Additionally, India’s stock market valuations are relatively high compared to other global stock indices, leading investors to wait for more positive cues before increasing their equity exposure. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., highlighted the challenges in the near-term, such as ongoing conflicts in the Middle East and concerns over a delay in the US Fed rate cut, which could further dampen investor sentiment.Among the companies listed on the Sensex, HDFC Bank experienced a significant drop of over 8% in its stock price following disappointing earnings in the December quarter. Other major laggards included Tata Steel, Kotak Mahindra Bank, Axis Bank, ICICI Bank, JSW Steel, Bajaj Finserv, State Bank of India, and IndusInd Bank. On the other hand, HCL Technologies, Tata Consultancy Services, Infosys, Tech Mahindra, Titan, Nestle, and PowerGrid saw gains.
Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services Ltd., attributed the decline in domestic equities to a weak global environment, the selloff in HDFC Bank, hawkish comments from the US Federal Reserve, escalating tensions in the Middle East, and a spike in bond yields, all of which negatively affected investor sentiment.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong also experienced declines. European markets were trading with significant losses, and the US markets ended in negative territory on Tuesday.
In the broader market, the BSE midcap gauge fell by 1.09%, while the smallcap index declined by 0.90%. The bankex index tumbled by 4.02%, financial services fell by 3.76%, metal declined by 2.86%, commodities dropped by 2.31%, telecommunication decreased by 1.94%, and realty fell by 1.47%. However, the IT, consumer durables, and teck sectors saw gains.
Out of the 3,900 stocks listed on the BSE, 2,510 experienced declines, 1,301 advanced, and 89 remained unchanged.