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Stock market tumbles: Sensex drops by 906 points, Nifty falls below 22,000

The sudden downturn in the market sent shockwaves throughout the investor community, as concerns over various economic factors, including inflation and geopolitical tensions, fueled uncertainty and contributed to the sell-off.

Edited By: Nitin Kumar @Niitz1 New Delhi Updated on: March 13, 2024 16:28 IST
BSE
Image Source : FILE Buksiness stock exchange building.

In a dramatic turn of events, the Indian stock market witnessed a significant plunge on Wednesday, with the Sensex plummeting by 906 points and the Nifty dipping below the crucial 22,000 mark. The sharp decline in the indices resulted in investors suffering losses amounting to a staggering Rs 21 trillion over just three days.

The Sensex, representing the performance of the Bombay Stock Exchange (BSE), witnessed a steep fall, marking one of the biggest single-day drops in recent times. Meanwhile, the Nifty, which tracks the performance of the National Stock Exchange (NSE), struggled to maintain its position above the 22,000 level.

Factors contributing to the downturn

Analysts pointed to deep losses in utility, energy, and metal stocks, along with recent selling activities by foreign investors, as key contributors to the market's negative sentiment.

Market performance

The 30-share index, Sensex, plummeted by 906.07 points or 1.23 per cent to settle at 72,761.89. Meanwhile, the broader Nifty index experienced a sharp decline of 338 points or 1.51 per cent, closing at 21,997.70.

Top losers and gainers

Power Grid emerged as the biggest loser among Sensex stocks, with a decline of over 7 per cent. Conversely, ITC, ICICI Bank, Kotak Mahindra Bank, Nestle, Bajaj Finance, and HDFC Bank were among the few gainers.

Expert insights

Vinod Nair, Head of Research at Geojit Financial Services, highlighted the unfavourable risk-reward balance in mid and small-cap stocks, exacerbated by prolonged premium valuations. He noted that FMCG and contrarian play like gold offers some refuge amidst the downturn.

Broader market performance

The BSE smallcap gauge witnessed a significant decline of 5.11 per cent, while the midcap index dropped by 4.20 per cent.

Global market trends

While Seoul settled in the green, Tokyo, Shanghai, and Hong Kong ended lower in Asian markets. European markets mostly traded in the green, while the US markets closed with significant gains on Tuesday.

Other market indicators

Foreign Institutional Investors (FIIs) bought equities worth Rs 73.12 crore on Tuesday, as per exchange data. Additionally, Brent crude climbed to USD 82.81 a barrel.

Economic data

India's industrial production growth slowed to 3.8 percent in January, while February retail inflation stood at 5.09 percent, remaining within the Reserve Bank's comfort zone for the sixth consecutive month, according to the latest government data.

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