Sensex Crashes by 1,390 Points, Nifty Falls 354 Points
- Sensex loses intra-day 76,000 level, Nifty drops below 23,150; small-cap and mid-cap stocks show resilience.
- Trump claims India is ready to reduce tariffs; FPIs sell stocks worth ₹5,902 crore.
Mumbai: Global markets, including Indian stock exchanges, witnessed turbulence following U.S. President Donald Trump’s statement regarding tariff reductions. Trump’s claim that India is willing to cut tariffs on U.S. exports created uncertainty among investors, leading to heavy selling in frontline stocks.
Institutional investors and fund managers triggered a massive sell-off in Sensex and Nifty, particularly in IT, software services, technology, and banking-financial stocks. This resulted in a sharp market correction, causing Sensex to drop 1,390.41 points, closing at 76,024.51, and Nifty to fall 353.65 points, ending at 23,165.70. During the day, Sensex touched a low of 75,912.18, while Nifty dipped to 23,136.40.
Sector-wise Performance:
IT & Software Stocks Hit Hard
Heavy selling in IT stocks led to the BSE IT index plunging 807.37 points to 35,315.34. Some major losers included:
- Tata Elxsi: -₹146.55 (₹5,069.75)
- Infosys: -₹42.90 (₹1,527.50)
- Mphasis: -₹56.85 (₹2,443.90)
- Cyient: -₹28.70 (₹1,235.30)
Consumer Durables Sector Declines on Tariff Concerns
Concerns over potential tariff impacts led to selling pressure in consumer durables stocks:
- Voltas: -₹106.75 (₹1,351.75)
- Supreme Industries: -₹98.25 (₹3,326.10)
- Blue Star: -₹54.45 (₹2,082.25)
- Titan Company: -₹77.30 (₹2,986.50)
- Crompton: -₹7.60 (₹346)
Banking & Financial Stocks Also Affected
The BSE Bankex index declined by 892.57 points to 58,649.81, with PSU banks facing major losses. Some notable declines included:
- HDFC Bank: -₹61.20 (₹1,767.30)
- ICICI Bank: -₹30.80 (₹1,317.60)
- Axis Bank: -₹16.55 (₹1,085.35)
- Kotak Mahindra Bank: -₹26.05 (₹2,145.25)
Additionally, financial services stocks saw significant declines as foreign portfolio investors (FPIs) offloaded shares:
- Prudent Advisory: -₹136.20 (₹2,206.80)
- Policybazaar: -₹74.25 (₹1,515)
- Anand Rathi: -₹78.90 (₹1,833.85)
- Bajaj Finserv: -₹69.45 (₹1,936.50)
Market Capitalization Shrinks by ₹3.44 Lakh Crore
The sharp decline in Sensex and Nifty resulted in a ₹3.44 lakh crore drop in the total market capitalization of BSE-listed companies, bringing it down to ₹409.43 lakh crore.
FPIs & DIIs Turn Net Sellers
- Foreign Portfolio Investors (FPIs) net sold equities worth ₹5,901.63 crore.
- Domestic Institutional Investors (DIIs) also recorded a net outflow of ₹4,322.58 crore.
Small & Mid-Caps Shine Amid Volatility
Despite the broader market downturn, small-cap and mid-cap stocks outperformed, attracting buying interest from institutional investors, operators, and high-net-worth individuals. Out of 4,195 stocks traded on BSE, 2,708 advanced, while 1,344 declined, indicating a positive market breadth.
While the overall market sentiment remains cautious, experts suggest that the strong performance in small and mid-cap stocks may provide opportunities for value buying in the near term.
