Indian Stock Markets Plunge: Sensex, Nifty 50 Drop Over 2%, Biggest Single-Day Fall in 2 Months
Indian Stock Markets Plunge: Sensex, Nifty 50 Drop Over 2%, Biggest Single-Day Fall in 2 Months
Mumbai, October 3, 2024 — The Indian stock market experienced a sharp fall today, marking its biggest single-day decline in two months. The benchmark indices, the BSE Sensex and NSE Nifty 50, dropped over 2%, wiping out investor wealth amid weak global cues and escalating geopolitical tensions in the Middle East.
The BSE Sensex plunged by 1,350 points to close at 64,500, while the Nifty 50 slipped 420 points to settle at 19,250. The sell-off saw the market capitalisation of all listed companies on the Bombay Stock Exchange (BSE) plummet by a staggering ₹10 lakh crore, shaking investor confidence.
Weak Global Cues and Geopolitical Tensions
The primary reason for today’s crash is attributed to weak global markets, which have been rattled by growing concerns over geopolitical tensions in the Middle East. With the situation intensifying, global oil prices surged, raising fears of inflationary pressures and potential disruptions in supply chains, thereby impacting investor sentiment worldwide.
Major markets in Asia and Europe also saw significant losses, compounding the negative momentum in the Indian market. The US Federal Reserve’s signals of potential interest rate hikes further added to global investor anxiety, leading to a broad-based sell-off.
Sector-Wise Performance
All major sectors on the NSE ended in red, with the Nifty Bank, Nifty IT, and Nifty Auto indices falling by over 2.5%. The banking sector bore the brunt of the market slide, as heavyweight stocks such as HDFC Bank, ICICI Bank, and SBI lost between 2% and 3%.
IT stocks also saw a sharp fall as fears of a potential slowdown in the US economy loomed large. Infosys, TCS, and Wipro each witnessed losses exceeding 3%.
The energy sector, heavily influenced by rising crude oil prices, also took a hit. ONGC and Reliance Industries were among the biggest laggards, both sliding by over 2%.
Market Experts React
Market experts have cautioned investors to remain vigilant in the face of continued global uncertainty. “Geopolitical risks, coupled with rising crude oil prices and the Federal Reserve’s hawkish stance, are likely to keep markets volatile in the coming weeks. Investors should adopt a cautious approach, with a focus on quality stocks,” said a leading analyst.
Foreign Institutional Investors (FIIs) Turn Net Sellers
Foreign Institutional Investors (FIIs), who have been key drivers of the market rally in recent months, turned net sellers today. FIIs sold shares worth ₹2,500 crore, adding further pressure to the market.
Outlook
With global tensions and economic uncertainty showing no signs of abating, market participants expect heightened volatility to persist in the near term. Investors are closely watching for any developments in the Middle East crisis, which could have far-reaching consequences for both global and domestic markets.