Lagatar24 Desk
New Delhi: The Indian equity market witnessed a massive erosion of investor wealth amounting to ₹24.69 lakh crore over the past four trading sessions, reflecting severe market volatility driven by global and domestic factors.
Key Highlights of the Market Slump:
1.Sensex Tanks Over Four Sessions
The BSE Sensex plummeted by 1,869.1 points, or 2.39%, over the last four days, with Friday’s trading session alone accounting for a 1,048.90-point drop. The 30-share benchmark index settled at 76,330.01, having plunged to an intraday low of 76,249.72.
2.Market Capitalisation Below $5 Trillion
The market capitalisation of BSE-listed firms dropped to ₹4,17,05,906.74 crore ($4.82 trillion), falling below the $5-trillion mark. On Monday alone, ₹12.61 lakh crore in investor wealth was wiped out.
3.Key Factors Impacting Sentiment
•Global Crude Oil Prices: Brent crude surged 1.43% to $80.90 per barrel, driven by US sanctions disrupting Russian crude exports.
•FIIs Selling Pressure: Foreign Institutional Investors (FIIs) sold over ₹20,000 crore worth of Indian equities in January.
•US Economic Data: Strong US non-farm payroll data dampened hopes of an early rate cut by the Federal Reserve, strengthening the dollar index and pressuring the Indian rupee.
•Rupee’s Decline: The rupee touched its lowest point in nearly two years against the dollar, adding to market concerns.
4.Sectoral and Stock Performances
•All BSE sectoral indices ended in the red, with Realty (-6.59%), Utilities (-4.38%), and Services (-4.35%) among the worst performers.
•Top laggards in the Sensex included Zomato (-6.50%), Power Grid, Adani Ports, Tata Steel, and NTPC.
•Axis Bank, TCS, HUL, and IndusInd Bank emerged as rare gainers amid widespread sell-offs.
5.Midcap and Smallcap Indices Suffer
The BSE Midcap and Smallcap indices faced steep declines of 4.17% and 4.14%, respectively, as over 500 stocks hit their 52-week lows.
Expert Insights:
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “Rising crude oil prices and a weakened rupee have triggered widespread selling in the domestic market. Concerns over inflation and a potential delay in RBI’s rate cuts have further exacerbated investor anxiety.”
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, highlighted, “Continued FII selling and elevated oil prices have created significant pressure on equities, pushing valuations lower and eroding wealth.”
