Sensex crashes over 1,500 points: Why is the stock market falling today?
As of 3:13 pm, the Sensex was trading at 74,486.50, down 1,528.78 points or 2.01%, while the Nifty50 declined 458.85 points or 1.93% to 23,357.00.
Benchmark equity indices extended their losses sharply on Tuesday afternoon, with the BSE Sensex plunging more than 1,500 points and the NSE Nifty slipping below the 23,400 mark as rising crude oil prices, a record-low rupee and escalating geopolitical concerns triggered broad-based selling across sectors.
As of 3:13 pm, the Sensex was trading at 74,486.50, down 1,528.78 points or 2.01%, while the Nifty50 declined 458.85 points or 1.93% to 23,357.00.
The sharp selloff wiped out nearly Rs 11 lakh crore in investor wealth during the session.
Investor sentiment remained fragile after the rupee plunged to a fresh all-time low of 95.58 against the US dollar earlier in the day, intensifying concerns around inflation, India’s import bill and foreign fund outflows.
The market weakness comes amid rising fears surrounding the fragile US-Iran ceasefire and a sharp surge in crude oil prices. Brent crude prices have climbed significantly in recent sessions, raising concerns over higher fuel costs and pressure on India’s current account deficit.
India imports more than 85% of its crude oil requirements, making domestic markets highly sensitive to global energy price shocks.
IT, financial stocks lead market rout
Information technology stocks emerged among the biggest drags on the market. Infosys fell 3.23%, TCS tumbled 3.92%, while HCLTech declined 4.21%. Tech Mahindra slipped 4.54% and Wipro dropped 3.79%, reflecting concerns around global growth and weaker technology spending.
Analysts said fears surrounding slowing global economic growth, weaker technology spending by overseas clients and rupee volatility continued to weigh heavily on IT stocks.
Banking and financial shares also remained under pressure. HDFC Bank fell nearly 2%, ICICI Bank slipped over 2% and Bajaj Finance declined 3.47%. Shriram Finance plunged over 5%, while HDFC Life and SBI Life also traded sharply lower.
Consumption-linked stocks witnessed sharp selling as well. Titan dropped 3.69%, Trent declined 3.21% and InterGlobe Aviation (IndiGo) fell over 2% amid concerns around discretionary spending and higher fuel costs.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the prime minister’s recent austerity appeal has also impacted sentiment in sectors expected to face pressure from reduced consumption.
“The austerity call by the prime minister impacted the stock prices of sectors which are expected to be negatively affected by reduced consumption. Stocks of sectors like jewellery, travel and hotels bore the brunt of selling yesterday,” he said.
He added that market direction will now depend heavily on crude oil prices and developments in West Asia.
“It is important to understand that these sectors will bounce back smartly if crude falls sharply and the austerity package becomes irrelevant. Therefore, watch out for the West Asia geopolitical situation and crude prices,” Vijayakumar said.
Despite the broader weakness, some oil-linked and metal stocks managed to limit losses or trade in the green. ONGC surged 4.75% as higher crude prices improved sentiment around upstream energy companies. Hindalco gained 1.73%, while Tata Steel and NTPC remained relatively resilient.
Analysts said markets are currently witnessing a sharp risk-off phase, with investors reducing exposure to equities amid rising geopolitical uncertainty and fears of prolonged pressure from elevated oil prices.
Market participants are now closely tracking crude oil movements, foreign institutional investor activity and possible intervention by the Reserve Bank of India to stabilise the rupee.