Mumbai: In a dramatic plunge that rattled investor sentiment, the Indian stock market continued its downward spiral on Wednesday, November 13, marking the fifth consecutive day of losses. The benchmark indices, BSE Sensex and NSE Nifty, closed in deep red as heavy selling gripped the market. Sensex shed 984 points, closing at 77,690.95, while Nifty slipped by 324.40 points to settle below the critical 23,600 mark at 23,559.05. The sweeping decline led to a staggering ₹6.88 lakh crore being wiped off from investors’ portfolios in a single trading day.
Broader Market Hit Hard, Midcaps and Smallcaps Suffer Sharpest Declines
The broader market bore the brunt of the sell-off, with the BSE Midcap index plunging 2.5% and the Smallcap index sinking by 3%, showing signs of heightened risk aversion among investors. All major sectoral indices closed deep in the red, reflecting a market-wide trend where defensive sectors could offer no shield from the downturn.
Market Capitalization Erodes by ₹6.88 Lakh Crore as Fear of Correction Looms
As investor losses mounted, the BSE’s market capitalization fell from ₹437.24 lakh crore on Tuesday to ₹430.36 lakh crore by the end of Wednesday’s session. This sharp contraction underscores the market’s current vulnerability, with the Sensex and Nifty each down around 10% from their recent peaks. Market analysts have now begun sounding the alarm over a potential shift into the correction zone, as broader global uncertainties and domestic factors weigh heavily on market sentiment.
Only 3 Sensex Stocks in Green; Tata Steel and M&M Lead Losses
Of the 30 Sensex stocks, a mere three managed to close in positive territory. Infosys led this limited group with a modest gain of 0.21%, while Tata Motors and Hindustan Unilever saw slight gains of 0.01% and 0.18%, respectively. On the downside, Tata Steel took the biggest hit, tumbling 3.40%, followed by Mahindra & Mahindra (M&M), Adani Ports, JSW Steel, and State Bank of India (SBI), which saw declines of up to 3.23%.
Over 3,000 Stocks in Decline; Market Breadth Shows Strong Bearish Sentiment
The bearish sentiment dominated market breadth, as 3,292 stocks ended lower on the Bombay Stock Exchange (BSE), with only 679 advancing. Another 96 stocks closed flat. Notably, 147 stocks touched their new 52-week high, but a concerning 175 stocks marked their new 52-week low, signaling broad-based weakness across sectors.
Outlook: Will the Market Enter a Correction Phase?
With markets down nearly 10% from recent highs, investors and analysts are on edge, with fears of a deeper correction looming large. Economic headwinds, both domestic and global, continue to challenge market stability.
