Sensex and Nifty Plunge Over 1% Amid Mixed Global and Domestic Cues
The Indian stock market witnessed a sharp fall of over 1% on Monday, influenced by mixed global and domestic cues.
Mumbai: The Indian stock market witnessed a sharp fall of over 1% on Monday, influenced by mixed global and domestic cues.
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Strong US employment data hinted at fewer interest rate cuts in 2025, adding to the market pressure.
Key Factors Behind the Market Crash
Rising crude oil prices, a weakening rupee, and significant foreign capital outflows were major contributors to the market slump. This collective downturn resulted in a staggering loss of approximately ₹12 lakh crore for investors.
Sectoral Impact: Realty, PSU Banks, and Metals Suffer
Heavy selling was observed across several sectors, notably in realty, PSU banks, metal, auto, and pharma. The realty sector was the worst hit, closing with a loss of over 6%.
Market Indices: Sensex and Nifty Take a Hit
- Sensex: Closed at 76,330.01, down by 1,048.90 points or 1.36%.
- Nifty: Ended at 23,085.95, down by 345.55 points or 1.47%.
Expert Insights on Market Sentiment
Market experts linked the domestic sell-off to global trends. Strong US payroll data has reduced hopes for multiple rate cuts in 2025, strengthening the dollar and raising bond yields, making emerging markets less attractive.
Rupak De from LKP Securities commented,
“Bears remained at the helm as the Nifty continued to breach crucial levels. The index slipped below its previous swing low on the daily chart, indicating increasing bearishness.”
He further added that holding the 23,000 mark is vital:
“If the Nifty sustains above 23,000 over the next few days, it could signal a potential recovery. Conversely, a decisive fall below this level might trigger a deeper correction.”
Broader Market Performance
- Nifty Bank: Closed at 48,041.25, down by 692.90 points or 1.42%.
- Nifty Midcap 100: Dropped 2,195.35 points or 4.02%, closing at 52,390.4.
- Nifty Smallcap 100: Declined by 723.45 points or 4.10%, ending at 16,922.10.
Also Read: Indian Economy Shows Steady Growth, Budget and Trump 2.0 Key to Market Returns
Top Losers and Gainers in Sensex
Top Losers:
Zomato, Power Grid, Tata Steel, NTPC, Tata Motors, Tech Mahindra, M&M, Asian Paints, Sun Pharma, L&T, SBI, Bajaj Finance, HDFC Bank, and ICICI Bank.
Top Gainers:
Axis Bank, TCS, IndusInd Bank, and Hindustan Unilever Limited.
FII and DII Activity
Foreign Institutional Investors (FIIs) continued their selling streak for the sixth consecutive day, offloading equities worth ₹2,254.68 crore on January 10. Meanwhile, Domestic Institutional Investors (DIIs) purchased equities worth ₹3,961.92 crore on the same day.
