Stock Market Today: The Indian equity benchmark indices, BSE Sensex and Nifty50, faced significant losses on Tuesday due to a massive outflow of foreign funds from the capital markets and weak global equities.
The BSE Sensex dropped 930.55 points or 1.15 per cent to settle at 80,220.72, while the Nifty50 declined 309 points or 1.25 per cent to 24,472.10.
The downturn was primarily led by major stocks such as Mahindra & Mahindra, State Bank of India, Power Grid, Tata Steel, Tata Motors, Larsen & Toubro, NTPC, Bajaj Finance, and Reliance, which collectively dragged the BSE Sensex down by 505 points, according to reports.
In contrast, ICICI Bank, Nestle, and Infosys emerged as the major gainers.
Why BSE Sensex, Nifty50 crashed today
Market sentiment was negatively impacted by various factors, including disappointing earnings growth trends, as reported by traders.
Analysts noted that weak earnings growth and sluggish global markets weighed on investor sentiment, with rising US bond yields and policy actions in China contributing to FII outflows.
Exchange data shows that on Monday, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,261.83 crore, while Domestic Institutional Investors (DIIs) purchased equities amounting to Rs 3,225.91 crore.
The rupee also ended the day marginally weaker at 84.0775 against the US dollar, marking its lowest-ever closing level, after hitting an all-time low of 84.0825 earlier in the session.
“Bearish sentiment continued to dominate the domestic market today amid heightened volatility, with small and midcap stocks taking the biggest hit,” Vinod Nair, Head of Research, Geojit Financial Service told news agency PTI.
“The recent sharp rise in US bond yields signals diminished expectations for aggressive rate cuts by the US Fed, also affecting fund flows to EMs. In the short term, this bearish outlook may persist due to sluggish earnings growth trends,” he added.
Hyundai Motor India Ltd, the Indian subsidiary of the South Korean automaker Hyundai, had a disappointing debut on the stock market. The company’s shares closed more than 7 per cent lower than the issue price of Rs 1,960.
The company stock opened at Rs 1,931 on the BSE, marking a 1.47 per cent decline from its issue price. It briefly recovered to a high of Rs 1,968.80, up 0.44 per cent, but failed to maintain the momentum, eventually dropping 5.81per cent to Rs 1,846.
On the NSE, Hyundai’s shares debuted at Rs 1,934, down 1.32per cent, before further tumbling 5.88per cent to Rs 1,844.65 during the session.
The stock market had opened the day on a subdued note, reflecting weak global sentiment and carrying over the negative momentum from Monday’s decline. The Sensex had gained a modest 183.87 points to start at 81,335.14, while the Nifty rose by 31.55 points to open at 24,812.65.
Earlier in the intra-day trading session, the BSE Sensex plunged as much as 1,001.74 points, or 1.23 per cent, to reach 80,149.53.
The market displayed a mixed trend, with 22 companies advancing and 27 declining on the Nifty. Shriram Finance, Tech Mahindra, ICICI Bank, HCL Technologies, and Nestle India led the gains, while Tata Steel, Bharat Electronics Limited (BEL), Mahindra & Mahindra (M&M), Tata Motors, and Bharat Petroleum Corporation Limited (BPCL) emerged as the top losers in the opening session.
Global market performance
Asian markets had a mixed performance, with Seoul and Tokyo ending the day lower, while Shanghai and Hong Kong managed to close higher.
In the commodities market, Brent crude, the global oil benchmark, rose by 0.61 per cent to reach $ 74.74 a barrel.
While the European markets, on the other hand, were trading in negative territory. The US markets had a mixed session on Monday.