Sensex Plunges Over 824 Points to Seven-Month Low Amid Global Uncertainty and Sectoral Sell-off

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Sensex

Key Points:

  • BSE Sensex hits new low: Declined by 824.29 points (1.08%) to close at 75,366.17, a seven-month low.
  • NSE Nifty dips below 23,000: Closed at 22,829.15, falling 263.05 points (1.14%), marking the first drop below this level since June 2024.
  • Sectoral weakness: IT, oil and gas, telecom, and consumer goods led the slump, with HCL Tech recording the sharpest fall (4.49%).
  • Global trade and economic concerns: Weak global cues, poor corporate earnings, and US trade policy uncertainty dampened sentiment.

Mumbai: Indian equity markets faced their worst decline in months as the BSE Sensex fell by 824.29 points (1.08%), closing at 75,366.17, its lowest since June 2024. The NSE Nifty, similarly, sank 263.05 points (1.14%), ending at 22,829.15, dipping below the 23,000 mark for the first time in over seven months.

The day’s trading session saw a high level of volatility, with the Sensex oscillating between 75,925.72 at its peak and a low of 75,267.59. Out of the 30 Sensex-listed stocks, 23 ended in losses, while only seven managed to register gains.

What Triggered the Slump?

The Indian markets mirrored a global sell-off, primarily driven by:

  • Weak global trends: Concerns over the US Federal Reserve’s upcoming meeting on interest rates, unresolved trade tensions, and slowdowns in major world markets.
  • Disappointing Q3 corporate results: Quarterly financial results of several companies failed to meet expectations, further dampening sentiment.
  • US trade policy uncertainties: Investor confidence was rattled by changing dynamics in US trade policy, including President Donald Trump’s now-reversed decision on imposing a 25% tariff on Colombia.

Sectoral Bloodbath: IT and Oil & Gas Hit Hard

Among the hardest-hit sectors were IT, telecom, utilities, power, consumer goods, health services, and oil and gas. Notable losers included:

  • HCL Tech: Fell by a significant 4.49%, making it the worst-performing stock among the Sensex constituents.
  • Tech Mahindra, Infosys, Tata Motors, and Reliance Industries: Registered notable declines.
  • Financial stalwarts like HDFC Bank and Tata Steel: Also faced heavy selling.

On the brighter side, seven stocks including ICICI Bank, Hindustan Unilever, M&M, SBI, and L&T managed to stay in the green.

US Trade Tensions Compound Investor Woes

Investor sentiment took a hit as US President Donald Trump introduced and then quickly rolled back a tariff of 25% on Colombian imports, citing a deal with Colombia on deported migrants. While this reversal eased tension slightly, the uncertainty surrounding US trade policies continued to weigh heavily on global markets.

Expert Take: Caution Ahead as Volatility Looms

Market experts observed, “Weak signals from the US and European markets, the upcoming settlement of monthly futures and options deals, FII outflows, and sluggish Q3 numbers have combined to push investors towards reducing equity exposure.”

Outlook for the Week

Market experts predict continued turbulence as several major events loom large:

  • The US Federal Reserve’s policy meeting, where interest rate decisions could influence global liquidity.
  • The upcoming Union Budget, which will be closely watched for fiscal measures aimed at boosting the economy.
  • The settlement of monthly F&O deals, which often adds to market volatility in the final week.

With global and domestic headwinds dominating the narrative, analysts advise caution. Investors are encouraged to focus on quality stocks and adopt a wait-and-watch approach as the market navigates through this period of heightened uncertainty.

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