The Indian stock market experienced a significant downturn on Monday as the Sensex plunged over 800 points, leading to a massive Rs 4.83 lakh crore decline in investor wealth. This sharp fall was driven by broad-based selling, highlighting weak investor sentiment. While Sensex dropped 844 points to 76,535, the Nifty index slipped by 165 points, ending at 23,265.
The Numbers Behind the Market Crash
Investor Wealth Declines
Investor wealth, which stood at Rs 429.67 lakh crore in the previous session, plummeted to Rs 424.84 lakh crore on Monday, reflecting a staggering loss of Rs 4.83 lakh crore in just a single trading session.
Top Losers and Gainers
Stocks such as Zomato, M&M, Tata Steel, Adani Ports, HDFC Bank, Kotak Mahindra Bank, and Asian Paints were among the biggest losers, with losses of up to 2.80% during early trading. On the brighter side, IndusInd Bank, Axis Bank, HUL, TCS, Titan, and NTPC managed to post gains, with IndusInd Bank leading the pack, rising by 3.14%.
Stocks Hitting Highs and Lows
Despite the sell-off, 65 stocks managed to hit their 52-week highs, signaling some resilience in specific sectors. However, the broader market was painted red, with 324 shares slumping to their 52-week lows.
Market Breadth Turns Negative
Out of the 3,602 stocks traded on the BSE, only 757 stocks were trading in the green, while 2,724 stocks declined, and 121 stocks remained unchanged. This reflects a significant tilt towards bearish sentiment.
Lower and Upper Circuits
During the market turbulence, 245 stocks hit their lower circuit limits, while 122 stocks managed to reach their upper circuit levels, indicating mixed activity amidst the overall market weakness.
Expert Opinion on Market Sentiment
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the market outlook, stating, “Market will continue to be under pressure from the many strong headwinds. The blow out jobs data from the US with 2.56 lakh job creation in December against expectations of 1.65 lakhs means the rate cut expectations in 2025 is now down to one. With the unemployment in the US down to 4.1% the economy doesn’t need any stimulus. This good economic news is turning out to be bad news for markets which were discounting many rate cuts this year.”
Midcap and Smallcap Indices Hit Hard
The broader market also felt the impact, with the BSE Midcap index tumbling 739 points to 43,501. Similarly, the BSE Smallcap index plummeted 831 points to 51,891, underlining the extent of the sell-off.
FII-DII Activity
Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 2,254.68 crore on Friday. Meanwhile, Domestic Institutional Investors (DIIs) stepped in, purchasing Rs 3,961.92 crore worth of shares, according to provisional NSE data.
A Look Back: Previous Session Performance
In contrast to Monday’s crash, the previous session on Friday ended on a positive note. The Sensex rose 271.50 points to close at 71,657, while the Nifty50 gained 73.90 points, finishing at 21,618.
Monday’s market crash underscores the fragility of investor sentiment amid global economic uncertainties and domestic challenges. As the markets navigate these headwinds, experts caution investors to remain vigilant and consider long-term strategies.
What are your thoughts on the market’s direction in the coming weeks?
