Indian stock markets witnessed one of their worst trading sessions in recent weeks as benchmark indices crashed amid intense selling pressure. The Sensex plummeted 1,065.71 points to close at 82,180.47, marking a decline of 1.28 percent, while the Nifty 50 fell 353.00 points to end at 25,232.50, down 1.38 percent.

Market Capitalisation Erosion

The widespread selloff resulted in a massive erosion of investor wealth, with approximately ₹10 lakh crore being wiped out from the total market capitalisation. This significant decline pushed the Nifty 50 to its lowest level in three months, reflecting the intensity of the current market correction.

Sectoral Performance Analysis

The market decline was broad-based, with all major sectoral indices ending in negative territory. The real estate sector bore the brunt of the selloff, declining by 5.00 percent, making it the worst-performing sector of the day.

Other key sectors also witnessed significant declines:

• Auto sector: Fell 1.5-2.5 percent
• Information Technology: Declined 1.5-2.5 percent
• Media: Dropped 1.5-2.5 percent
• Metals: Decreased 1.5-2.5 percent
• PSU Banks: Fell 1.5-2.5 percent
• Pharmaceuticals: Declined 1.5-2.5 percent
• Oil & Gas: Dropped 1.5-2.5 percent
• Consumer Durables: Fell 1.5-2.5 percent

Extended Market Weakness

The current session's decline extends a broader pattern of market weakness. Over the past seven weeks, the Sensex has fallen approximately 3,800 points, while the Nifty 50 has declined by 4.00 percent, highlighting the sustained pressure on Indian equities.

Broader Market Impact

The correction was not limited to large-cap stocks, as broader markets also extended their losses. The mid-cap and small-cap segments fell up to 2.00 percent, with the Nifty Midcap 100 index moving below its 100-day moving average, indicating technical weakness in the broader market structure.

The current market environment reflects multiple challenges facing Indian equities, including sustained foreign institutional investor outflows and global economic uncertainties. The significant market capitalisation erosion underscores the magnitude of the current correction and its impact on investor sentiment.

Source: https://www.moneycontrol.com/

The Indian stock market faced continued selling pressure on Tuesday, January 20, 2025, marking the second consecutive session of declines. Market participants remained cautious amid weak global cues and concerns over trade war risks, while unimpressive third-quarter earnings added to the negative sentiment.

Market Performance Overview

The benchmark indices witnessed significant declines during the trading session. The following table summarizes the key market movements:

The 30-share Sensex fell over 400 points, representing more than 0.50% decline to reach an intraday low of 82,812.32. Meanwhile, the Nifty 50 breached the psychologically important 25,450 level on the downside, touching 25,432.60 during intraday trade.

Two-Day Market Decline

The cumulative impact of the selling pressure over two consecutive sessions has been substantial. The market performance over this period shows:

Both benchmark indices have experienced approximately 1% decline over the two-day period, with the Sensex losing more than 750 points from its previous levels.

Market Factors

Several factors contributed to the negative market sentiment during this period:

• Global Market Weakness: Weak global cues influenced domestic market performance
• Trade War Concerns: Ongoing risks related to international trade tensions
• Earnings Performance: Unimpressive third-quarter earnings results affected investor confidence
• Consecutive Session Pressure: Sustained selling pressure across two trading sessions

The combination of these factors created a challenging environment for equity markets, with investors adopting a cautious approach amid the prevailing uncertainties. The breach of key technical levels, particularly the Nifty 50 falling below 25,450, highlighted the extent of the current market pressure.