On Tuesday, The Indian stock market witnessed a significant downturn with key indices plunging amidst a broad-based sell-off. The Nifty index stumbled by 238.25 points, or 1.08%, closing at 21,817.45, while the Sensex endured a decline of 736.37 points, settling at 72,012.05.
During today's trading session, IT stocks experienced a significant downturn, particularly intensified by a sharp decline in Tata Consultancy Services (TCS) shares along with Fast Moving Consumer Goods (FMCG) stocks. This downward trend was primarily attributed to apprehensions surrounding the impending decision of the US Federal Reserve on interest rates, slated for Wednesday, which could influence foreign fund inflows into the market.
Among the top losers in the Nifty basket were TCS, BPCL, Cipla, and Britannia, witnessing declines ranging from 3% to 4%. Conversely, Bajaj Auto, Bajaj Finance, Eicher Motors, and Kotak Bank emerged as the top gainers.
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market correction to various factors, including concerns over premium valuations and delays in US Fed rate cuts due to higher-than-expected inflation, as reflected in the upward trajectory of the dollar index.
Additionally, the decision by the Bank of Japan to hike interest rates for the first time in 17 years had a ripple effect across Asian markets, contributing to the pessimism in the Indian market.
The market downturn translated into a significant erosion of investor wealth, with the market capitalization of BSE-listed companies decreasing to Rs 3,73,94,593 by the end of trading on Monday, down from Rs 3,78,79,323.43 on Friday, according to provisional exchange data.
Investors are now closely monitoring developments in global markets and awaiting cues from central banks to get through the prevailing volatility in the stock market.
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