Mumbai: Dalal Street witnessed a massive sell-off on Friday as both benchmark indices, Sensex and Nifty, plunged nearly 2% each. The S&P BSE Sensex nosedived by 1,414 points (1.9%) to close at 73,198, while the Nifty50 dropped 420 points (1.86%) to settle at 22,124. The market carnage wiped out nearly â‚ą9 lakh crore in investor wealth, dragging the total market capitalization of BSE-listed firms to â‚ą384.22 lakh crore.
Key Triggers Behind the Crash
The sharp decline was primarily driven by fears of a global trade war and persistent selling by foreign investors. Concerns over the US imposing a 25% tariff on imports from Canada and Mexico, along with an additional 10% tariff on Chinese goods, spooked investors. Adding to the uncertainty, potential tariffs on the European Union further fueled market jitters.
Sectoral Performance
Information technology stocks bore the brunt of the sell-off, with the Nifty IT index crashing 6.5% after Nvidia’s stock plummeted overnight in the US. Major IT players like Tech Mahindra, Wipro, and Mphasis were among the top losers. Auto stocks also took a hit, with the Nifty Auto index falling nearly 4%. Other sectors, including banking, metals, media, FMCG, pharma, and oil & gas, declined between 0.7% and 3.5%.
Nifty’s Longest Losing Streak in 29 Years
The Nifty registered its fifth consecutive monthly loss, marking its longest losing streak in 29 years. This prolonged downturn has raised concerns among investors about the market’s near-term trajectory.
Expert Insights
Vinod Nair, Head of Research at Geojit Financial Services, said, “The national market experienced a sharp decline amid heightened bearish sentiment, largely influenced by weak global cues. The decline was triggered by fears of new tariffs on US imports and uncertainty surrounding trade policies.”
Rupak De, Senior Technical Analyst at LKP Securities, commented, “Nifty witnessed a significant decline, shedding over 400 points after a consolidation breakdown. The RSI remains bearish but has entered the oversold zone. In the near term, Nifty is expected to find support around 21,800-22,000. A sustained move above 21,800 could lead to a recovery, while failure to hold this level may trigger another sharp decline.”
What’s Next?
As investors navigate the ongoing volatility, all eyes are now on the domestic Q3 GDP data, which is expected to provide crucial insights into India’s economic recovery and influence market direction in the coming weeks.
Stay tuned for more updates on the market trends and expert analysis.
