The Indian Stock Market witnessed a devastating decline today as investors saw more than ₹13 lakh crore wiped out in the early hours of trading. This market crash marks a grim beginning to the week, fueled by a sharp downturn in global markets, notably the US market.
Opening Plunge: The market opened with a significant gap down, leading to a swift and severe drop in stock values. The Bank Nifty, a key index, opened with a decline of over 650 points, quickly falling 800 points to 50,560 within minutes. Reliance Industries, a major player in the market, experienced a steep decline of 2-2.5 percent. The India VIX, an indicator of market volatility, surged by 18 percent, signaling substantial instability.
Indices Plummet:
- BSE Sensex: Opened down by 2,393.77 points or 2.96 percent, settling at 78,588.
- NSE Nifty: Opened down by 414.85 points or 1.68 percent, at 24,302.
Pre-Opening Shock: Before the market officially opened, the BSE Sensex was already showing a severe drop, trading at 77,207.14 points, down by 3,774.81 points or 4.66 percent. Similarly, the NSE Nifty was trading at 24,112.60 points, reflecting a significant decline of 605.10 points or 2.45 percent.
Global Influence: The market’s steep decline can be attributed to a ripple effect from global markets. On Friday, the US market saw substantial losses, with the Dow Jones Industrial Average dropping by 610.71 points or 1.51 percent, closing at 39,737.26 points. The S&P 500 fell by 1.84 percent, and the tech-heavy Nasdaq Composite plummeted by 2.43 percent to 16,776.16 points.
Market Reaction:
- BSE Sensex: All 30 stocks saw declines, with the index deeply entrenched in the red. Half an hour into trading, only 5 stocks showed some recovery, while 25 remained in a bearish trend.
- NSE Nifty: Similarly, all 50 stocks were dominated by a bearish trend.
- Market Cap: Investors in BSE saw over ₹13 lakh crore in losses, with the market cap falling to ₹444.35 lakh crore from ₹457.21 lakh crore on Friday.
Broad Market Impact: Out of 3,325 stocks traded on the BSE, 2,770 stocks were down, with only 413 stocks rising and 142 remaining unchanged. The BSE Midcap index fell by 3.13 percent, and the BSE Smallcap index dropped by 3.84 percent.
Investor Advisory: Given the current market volatility, investors are advised to exercise caution. The sharp declines underscore the inherent risks in stock market investments. It is crucial to consult with financial experts before making any investment decisions.
Disclaimer: The information provided here is for informational purposes only. Investing in the stock market involves risks, and readers are advised to seek professional guidance. ABPLive.com does not offer investment advice and is not responsible for any financial losses.
This article provides a detailed account of the market crash and its implications, while also emphasizing the need for cautious investment practices.
