Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ Markets / Stock Markets/  Stock market today: Sensex tanks 1,800 points from day’s high, Nifty 50 falls 1.5%: 5 key reasons behind market crash
BackBack

Stock market today: Sensex tanks 1,800 points from day’s high, Nifty 50 falls 1.5%: 5 key reasons behind market crash

Sensex crashed 1,800 points from day's high of above 72,000-mark. The Nifty 50 also dropped more than 550 points after hitting intraday high of above 21,700. Heavy beating was witnessed in broader markets as the Nifty Midcap 100 and the Nifty Smallcap 100 indices falling over 3% each.

Sensex closed 1,053.10 points, or 1.47%, lower at 70,370.55, while the Nifty 50 plunged 333.00 points, or 1.54%, to settle at 21,238.80.Premium
Sensex closed 1,053.10 points, or 1.47%, lower at 70,370.55, while the Nifty 50 plunged 333.00 points, or 1.54%, to settle at 21,238.80.

The Indian stock market indices, Sensex and Nifty 50, pared early gains to end 1.5% lower each on Tuesday dragged by heavy selling in financial heavyweights led by HDFC Bank.

The benchmark BSE Sensex plunged 1,800 points from day's high of above 72,000-mark. The Nifty 50 also dropped more than 550 points after hitting intraday high of above 21,700.

At the end of the session, Sensex closed 1,053.10 points, or 1.47%, lower at 70,370.55, while the Nifty 50 plunged 333.00 points, or 1.54%, to settle at 21,238.80.

Heavy beating was witnessed in broader markets as the Nifty Midcap 100 and the Nifty Smallcap 100 indices falling over 3% each.

Barring Nifty Pharma, all other sectoral indices ended in the red with Nifty Media cracking nearly 13%, followed by Nifty Realty down 5.31%, Nifty PSU Bank down 4.1%, while Nifty Metal and Nifty Oil & Gas cracking 3.4% each.  

Among stocks, Zee Entertainment shares plunged 30% intraday after its failed merger with the local unit of Japan's Sony Corp stirred concerns about its survival in a highly competitive industry.

Read here: Zee share price tanks 30%, erases over 6k crore mcap as Sony calls off merger; brokerages downgrade stock

Meanwhile, investors reacted to December quarter corporate earnings which has so far been mixed.   

Here are 5 key reasons that spooked the Indian stock market today: 

Geopolitical concerns

Tensions in the Middle East and the Red Sea escalated, denting investors sentiment.

Israeli military on Tuesday said its twenty-four soldiers were killed in Gaza, the biggest death toll in a single day since the war began in October, amid what Palestinians said was the most intense bombardment of southern Gaza in the conflict, Reuters reported.

“Tensions in West Asia and the Red Sea are areas of serious concern. If something goes wrong, the market will be impacted since valuations are high. Therefore, even when optimistic, investors should be cautious," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

(Exciting news! Mint is now on WhatsApp Channels :rocket: Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

Bank stocks

Sell-off in bank stocks led the decline in overall markets pushing Bank Nifty down more than 2%, while Nifty PSU Bank index plunged 4.5%.

Barring ICICI Bank, all the constituents of Nifty Bank were trading with a loss ranging 1% to 6%. IDFC First Bank, Punjab National Bank (PNB), IndusInd Bank, AU Small Finance Bank, SBI, Axis Bank and HDFC Bank were the top index laggards.

HDFC Bank share price extended its losses from last week, declining 2.5%. HDFC stock is down nearly 14% since reporting disappointing results last week.

“HDFC Bank continues to see weakness due to liquidations from foreign investors, while small- and mid-cap indexes are undergoing long-awaited corrections after the run-up in valuations," said Saurabh Jain, assistance vice president for research at SMC Global Securities. 

Fall in index heavyweights

Index heavyweights like HDFC Bank, Reliance Industries, SBI, Coal India, Axis Bank, IndusInd Bank, Tata Motors, among many others declined anywhere between 2%-4% each. 

Also Read: Stock market today: Nifty 50, Sensex fall over 1.5%; mid, smallcaps bleed; investors lose nearly 9 lakh crore in a day

FII Selling

Sustained outflows of foreign funds from domestic equity market also dented sentiment. Foreign institutional investors (FII) have offloaded Indian equities worth more than 23,000 crore in January so far, as per stock exchange data. 

Technical factors

The Nifty 50 index remained within the range of 21,500-21,700. However, on Tuesday, it broke below the 21,500 level, which analysts believe might trigger a correction towards 21,300 and below.

In the case of Bank Nifty, the level of 45,500 was considered a strong support, which the index broke today. 

“A close below the crucial support of 45,600 might instigate a substantial downside correction towards 44,000," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

(With inputs from Reuters)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 Jan 2024, 10:21 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App