"Indian markets faced a steep decline today, with the Sensex and Nifty 50 closing lower, wiping out nearly ₹3 lakh crore in market capitalization. Concerns over a possible global trade war, coupled with weak international signals, kept investors cautious, creating a ripple effect across the major indices.
Market Performance: Sensex and Nifty Take a Hit
- Sensex closed at 83,246.18, down 324 points or 0.39%.
- Nifty 50 ended at 25,585.50, down 109 points or 0.42%.
- BSE Midcap index fell 0.43%, while Smallcap index plunged 1.28%.
- Total market capitalization of BSE-listed firms dropped from nearly ₹468 lakh crore to ₹465 lakh crore.
The sharp sell-off was driven largely by concerns over global trade tensions, putting pressure on investors and dampening domestic market sentiment.
What Triggered the Fall Today?
The markets reacted to US President Donald Trump's announcement of tariffs on eight European nations, effective February 1, over Greenland. Investors worried that retaliatory measures could disrupt global trade, slow economic growth, and affect corporate profitability.
This uncertainty created a risk-off mood, with investors seeking safer assets like gold. Domestic equities reflected this sentiment, showing widespread declines across sectors and indices.
Sector-Wise Performance: Mixed Trends Across Indices
While the overall market declined, some sectors managed modest gains, highlighting selective resilience:
- Nifty Bank: Closed 0.34% lower at 59,891.35
- Financial Services: Almost flat
- Nifty FMCG: Up 0.67%
- Nifty Auto: Up 0.13%
- Nifty Realty, Media, Oil & Gas: Declined up to 2%
The volatility index (Nifty VIX) jumped 4%, indicating heightened market uncertainty.
Top Gainers and Losers in the Nifty 50
Some stocks bucked the broader trend and posted gains:
- Top Gainers:
- InterGlobe Aviation (IndiGo) +4.16%
- Tech Mahindra +2.39%
- Hindustan Unilever +2.29%
- Top Losers:
- Wipro -8.21%
- Reliance Industries -3.07%
- Eternal -2.87%
Out of the Nifty 50, 31 stocks ended lower, reflecting a broad-based decline.
High-Volume Counters
Trading activity remained concentrated in a few stocks:
- Bharat Coking Coal: 73.8 crore shares
- Vodafone Idea: 56.4 crore shares
- Tata Silver ETF: 35.6 crore shares
These stocks attracted significant attention from investors looking for liquidity amid the sell-off.
Notable Movers on the BSE
- Eight stocks surged more than 15%, including Jindal Saw, Alacrity Securities, and AMD Industries.
- Nearly 100 stocks hit 52-week highs, such as Tech Mahindra, PNB, LTIMindtree, Federal Bank, Canara Bank, AXIS Bank, and Vedanta.
- In contrast, over 430 stocks hit 52-week lows, including ITC, Dixon Technologies, Indian Hotels Company, IRCTC, and L&T Technology Services.
The market showed divergence, with pockets of strength even as broader indices fell.
Summary: A Day of Market Caution
Today’s Sensex and Nifty news highlights the vulnerability of Indian markets to global trade shocks and domestic sentiment swings. Investors faced a one-day wealth erosion of nearly ₹3 lakh crore, underlining the impact of external events on domestic equities.
Despite the losses, certain sectors and stocks continued to show resilience, reflecting selective investor confidence amid broader market turbulence.
Source: Livemint
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