Key Points:
- Sensex crashed 380+ points within 10 minutes of opening to 84,833
- Nifty tumbled 120+ points to 25,912 level
- Asian markets bloodbath: Nikkei -700 points, Hang Seng -2%, Kospi -1.80%
- US markets weak: Dow Futures -112 points, S&P 500 closed in red
- Axis Bank plunged 3.40%, Eternal Share fell 3.35%, Infosys dropped 1.30%
- Mid-cap stocks Ola Electric, BHEL, KPI Tech declined 2-3%
Asian markets witnessed another wave of panic selling on Tuesday that directly impacted domestic indices. Japan’s benchmark Nikkei index fell by more than 700 points to 49,355, while Hong Kong’s Hang Seng also dropped by nearly 2 percent. Similarly, South Korea’s Kospi index was trading down by 1.80 percent, creating a negative ripple effect across global markets.
This sharp decline in foreign markets directly impacted the Indian stock market, which opened deep in the red territory. The massive crash in Asian markets like Japan, Hong Kong, and South Korea signaled ongoing global economic slowdown and uncertainty, increasing investor concerns about the stability of emerging markets.
Sensex and Nifty Open With Heavy Losses
Due to negative signals from foreign markets, the Indian market opened with significant losses. The Bombay Stock Exchange’s 30-share Sensex opened at 85,025, down from its previous close of 85,213. Within just 10 minutes of trading, the Sensex fell by more than 380 points to 84,833, reflecting intense selling pressure from institutional and retail investors.
The National Stock Exchange’s Nifty also opened lower at 25,951, down from its previous close of 26,027, and soon fell by more than 120 points to the 25,912 level. The decline across both major indices indicated broad-based selling across sectors, with banking and IT stocks leading the downturn.
US Markets Add to Global Weakness
It wasn’t just Asian markets that were under pressure, the US stock market also looked weak on the previous trading day. The Dow Futures closed down 112 points, while the benchmark Dow Jones index closed down 42 points. The S&P 500 index also closed in the red with a marginal decline, contributing to the negative sentiment globally.
This weakness in US markets, combined with the Asian selloff, created a perfect storm for Indian markets, which are already facing concerns about domestic economic growth and corporate earnings. The global negative sentiment is putting sustained pressure on Indian markets, with foreign institutional investors continuing their selling spree.
Major Stocks Plunge Across Sectors
Several major stocks plummeted in this significant decline in the Indian stock market. Stocks like Axis Bank (3.40%), Eternal Share (3.35%), and Infosys (1.30%), included in the BSE’s large-cap segment, registered significant declines. Meanwhile, Tata Steel and BEL also fell by more than 1 percent, reflecting weakness in metals and defense sectors.
In the mid-cap and small-cap categories, stocks like Ola Electric, BHEL, and KPI Tech also saw sharp declines of 2 to 3 percent. The broad-based selling across market capitalizations indicated that investors were pulling out funds indiscriminately, fearing further downside in the coming sessions. The market breadth remained heavily negative, with declining stocks far outnumbering advancing ones.
