Sensex and Nifty Plunge as Monday Blues Hit Indian Stock Market
The Indian stock market witnessed a sharp decline on Monday, as both the Sensex and Nifty fell by over 1% in the afternoon session after opening in the green. All major sectoral indices traded in the red, with significant losses across various segments.
Mumbai: The Indian stock market witnessed a sharp decline on Monday, as both the Sensex and Nifty fell by over 1% in the afternoon session after opening in the green. All major sectoral indices traded in the red, with significant losses across various segments.
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Market Performance: Sensex and Nifty Struggle
At around 12:00 PM, the Sensex stood at 77,979.54, down by 1,243.57 points or 1.57%, while the Nifty dropped to 23,607.35, marking a loss of 397.40 points or 1.66%. The downtrend was led by sharp declines across multiple sectors, with Nifty PSU Bank witnessing a significant drop of over 3%.
Sectoral Breakdown: Broad-Based Selloff
All major sectors experienced a downturn, with auto, metal, realty, and media sectors suffering losses of more than 2%. On the National Stock Exchange (NSE), 2,221 stocks were in the red, while only 291 stocks managed to stay in the green.
The Nifty Bank index also saw a considerable decline, shedding 930.85 points or 1.83%, to settle at 50,057.95. The Nifty Midcap 100 index dropped 1,326.30 points or 2.29%, while the Nifty Smallcap 100 index lost 481.40 points or 2.53%.
Key Stock Losses in the Sensex Pack
Several major companies in the Sensex pack suffered notable losses, including Tata Steel, Kotak Mahindra Bank, Asian Paints, Power Grid, NTPC, M&M, UltraTech Cement, IndusInd Bank, Zomato, Maruti Suzuki, HDFC Bank, Reliance, and Nestle India.
Also Read: Indian Stock Market Opens Higher: Nifty Crosses 24,000 in Early Trade
Expert Analysis: External and Domestic Influences on Market
Experts attribute the market’s downturn to a combination of negative external factors and domestic influences. The dollar index remains elevated at 109, while the 10-year US bond yield is at 4.62%, creating an unfavourable macro environment. As a result, Foreign Institutional Investors (FIIs) are expected to continue their selling spree until there is a decline in bond yields and a stabilization of the dollar.
Foreign Institutional Investors (FII) and Domestic Institutional Investors (DII) Activity
According to the latest data, FIIs sold equities worth Rs 4,227.25 crore on January 3, 2025, while DIIs bought equities worth Rs 820.60 crore on the same day, indicating a mismatch in market sentiment.
Outlook for the Market
The Indian stock market is likely to remain volatile, with external macroeconomic pressures continuing to influence foreign investment flows. However, positive domestic factors could provide some support for the market in the coming weeks.
Stay tuned for further updates on the market’s performance and key trends in the coming trading sessions.
