Sensex plunges 1,000 points: What's behind today's stock market crash
What's the story
The Indian stock market witnessed a major crash today, with the BSE Sensex crashing over 1,000 points from its daily high and the NSE Nifty slipping below the 23,200 mark. The crash was mainly led by a sharp fall in banking and metal stocks. The broader market also mirrored the negative sentiment with mid-cap and small-cap stocks each losing 1%.
Market impact
Market capitalization erodes by ₹4.5 lakh crore
The bearish trend in the market led to a massive erosion of market capitalization. Data from the exchanges shows that today's trading session witnessed a loss of ₹4.5 lakh crore in market cap. Major underperformers on the index were Adani Enterprises, Kotak Mahindra Bank, Reliance Industries, Trent, and Adani Ports.
International influence
Global market trends impact Indian stocks
In the global markets, US stock futures witnessed an uptick as Donald Trump took office for his second term as US President. However, Asian markets remained flat after Trump announced a 25% tariff on Mexico and Canada by February 1. The news overshadowed earlier optimism for a delay in tariff decisions sparked by his inauguration speech.
Sectoral slump
Market performance and sector-wise losses
At the time of writing, the Sensex was down by 7500 points or nearly 1% to 76,323, while the Nifty had slipped by 191.45 points or 0.82% to 23,153.30. All sectors traded in the red with PSU banks and Metal stocks losing over 1% each. Nifty Realty also witnessed a major fall led by DLF, Oberoi Realty, and Phoenix while Nifty Energy, Infra, and IT stocks fell up to a percent each.