Bloodbath on Dalal Street: 500 stocks hit 1-year lows
What's the story
The Indian stock market took a massive hit on January 13, with more than 500 stocks crashing to their lowest levels in a year.
The Sensex plummeted 1,049 points (1.36%) to close at 76,330.01, while the Nifty 50 shed 346 points (1.47%). Midcap and Smallcap indices took a severe hit, declining 4.17% and 4.14%, respectively.
The overall market capitalization plunged by ₹13 lakh crore, eroding investor wealth significantly.
Market impact
Major companies hit 52-week lows
A wave of selling gripped the Indian stock market today, with a staggering 508 stocks, including prominent names like Asian Paints, Tata Steel, and Bank of Baroda, hitting their 52-week lows on the BSE.
This sharp decline impacted a wide range of sectors, encompassing banking, metals, energy, and automobiles.
Blue-chip companies such as LIC, MRF, ACC, Astral, Adani Wilmar, and several public sector banks, including Bank of India, BHEL, and Central Bank of India, also touched their 52-week lows today.
Reason
What caused the stock market crash today
The market crash today was triggered by several factors, including rising oil prices, a weakening rupee, foreign investor outflows, and robust US job data suggesting fewer rate cuts in 2025.
"Recent GDP downgrades and slowing earnings amidst higher valuations are weighing heavily on market sentiment. Expect volatility in the near term, with the 2025 budget, Q3 results, RBI policy, and Trump's policies being key factors" in the short term, said Vinod Nair, Head of Research at Geojit Financial Services.