NewsStocksIndian Stock Markets Plunge: Sensex Drops Over 600 Points as Financial Stocks Lead DeclineIndian Stock Markets Plunge: Sensex Drops Over 600 Points as Financial Stocks Lead Decline
By ScanX News Team
Indian equity markets experienced a substantial downturn, with the Sensex falling 517.00 points (0.63%) to 81,668.00 and Nifty50 dropping 183.00 points (0.73%) to 24,879.00. The financial sector led the decline, with Bajaj Finance and Bajaj Finserv falling 5.50% and 4.50% respectively. The auto sector also faced pressure, with the Nifty Auto index falling 1.30%. Smaller cap stocks experienced even steeper declines. Factors contributing to the market's negative performance include uncertainty surrounding US-India trade negotiations, continued selling by Foreign Institutional Investors, and weak performance in Asian markets.
*this image is generated using AI for illustrative purposes only.
Indian equity markets experienced a significant downturn today, with the benchmark indices registering substantial losses. The decline was primarily driven by weakness in the financial sector and broader market concerns.
Market Overview
As of 11:10 am, the Sensex had fallen by 517.00 points (0.63%) to 81,668.00, while the Nifty50 dropped 183.00 points (0.73%) to 24,879.00. Earlier in the day, the Sensex had plummeted by over 640.00 points, highlighting the intensity of the sell-off.
The market-wide impact was evident in the total market capitalization of BSE-listed companies, which saw a staggering decrease of Rs 4.75 lakh crore, bringing it down to Rs 453.35 lakh crore.
Sector-wise Performance
Financial Sector Leads the Decline
The financial sector bore the brunt of the market downturn:
| Company | Change |
|---|---|
| Bajaj Finance | -5.50% |
| Bajaj Finserv | -4.50% |
These significant drops came despite strong quarterly results, as concerns over asset quality in the MSME (Micro, Small, and Medium Enterprises) segment weighed heavily on investor sentiment.
Auto Sector Under Pressure
The Nifty Auto index emerged as the leading sectoral decliner, falling 1.30%.
Broader Market Underperformance
Smaller cap stocks faced even steeper declines:
| Index | Change |
|---|---|
| Nifty Midcap100 | -1.20% |
| Nifty Smallcap100 | -1.50% |
Contributing Factors
Several factors contributed to the market's negative performance:
US-India Trade Negotiations: Uncertainty looms as the August 1 deadline for US-India trade deal negotiations approaches.
Foreign Institutional Investor (FII) Selling: Continued sell-off by FIIs, with Rs 11,572.00 crore worth of Indian equities sold in the last four trading days.
Global Market Cues: Weak performance in Asian markets added to the downward pressure on Indian equities.
Market Outlook
The sharp decline in Indian equity markets reflects a combination of domestic concerns and global uncertainties. Investors are closely watching the financial sector, particularly the asset quality in the MSME segment, despite strong quarterly performances from major players.
As the markets navigate through these challenges, all eyes will be on the upcoming US-India trade negotiations and any potential shifts in FII investment patterns. The performance of global markets, especially in Asia, will also play a crucial role in shaping investor sentiment in the coming days.
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