Market meltdown in numbers: ₹7 lakh crore erased as Sensex plunges 1,200 points in early trade

Synopsis: Investor wealth declines by Rs. 6.93 lakh crore, dropping to Rs. 451.22 lakh crore. Sensex plunges 1,207 points; Nifty slips 368 points. Top losers include JSW Steel, Tata Steel, IndusInd Bank, Bajaj Finserv, Axis Bank, and M&M. Despite market weakness, 177 stocks hit 52-week highs. Midcap and small-cap indices face significant losses. FIIs offload Rs. 3,560 crore worth of equities, while DIIs buy Rs. 2,646.65 crore.

Investor sentiment took a massive hit on Dalal Street as the equity markets faced a broad-based selloff on Friday. 

The Sensex plunged by over 1,200 points in early trade, while the Nifty tumbled 368 points, reflecting widespread market pessimism.

Investor Wealth Erosion:

The market turbulence wiped out ₹6.93 lakh crore in investor wealth, bringing the market valuation down to ₹451.22 lakh crore from ₹458.15 lakh crore in the previous session.

Indices in Red:

The Sensex fell 1,207 points to 80,082, while the Nifty slipped to 224,180, signaling weak investor confidence. Broader market indices mirrored this trend, with the BSE midcap index dropping 620 points to 47,195 and the BSE small-cap index tumbling 767 points to 56,358.

Top Losers and Gainers:

Key losers on the Sensex included JSW Steel Ltd, Tata Steel, IndusInd Bank, Bajaj Finserv, Axis Bank, and M&M, all declining up to 3.23%. Bharti Airtel stood as the sole gainer, rising 1.5%.

Stock Market Highlights:

• 52-Week Highs and Lows: Amidst the market gloom, 177 stocks managed to touch 52-week highs, while 27 stocks fell to their 52-week lows.
• Market Breadth: Of the 3,888 stocks traded, 1,001 were in the green, while 2,736 were in the red. 151 stocks remained unchanged.
• Circuit Breakers: 220 stocks hit their lower circuit, whereas 223 shares reached their upper circuit limits during early trading hours.

FII-DII Activity:

Foreign institutional investors (FIIs) sold ₹3,560 crore worth of equities on a net basis on Thursday, contributing to the market slide. Meanwhile, domestic institutional investors (DIIs) countered with purchases worth ₹2,646.65 crore, as per provisional data from the NSE.

Context from the Previous Session:

In Thursday’s session, markets were already under pressure. The Sensex ended 236 points lower at 81,289, while the Nifty closed 93 points down at 24,548.70.

Conclusion:

Friday's market crash underscores the fragile sentiment among investors amid global and domestic headwinds. While the indices and broader markets faced significant declines, a silver lining emerged as several stocks reached 52-week highs, reflecting pockets of resilience. For investors, navigating this volatile environment requires a cautious approach and expert guidance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are urged to consult with a qualified financial advisor before making any investment decisions.