Indian stock market crashes, investors lose nearly ₹3 lakh crore
India's benchmark equity indices took quite a hit today, with the Sensex diving by 1,200 points and the Nifty slipping below the 26,000 mark. This steep drop was mainly fueled by heavyweights like Reliance Industries and big names in the IT and financial sectors. To add to the woes, the total market capitalization of all BSE-listed companies took a hit of nearly ₹3 lakh crore.
Major contributors to the downturn
Reliance Industries, ICICI Bank, HDFC Bank, and Axis Bank were among the major contributors to the Sensex's fall, collectively pulling it down by 535 points. Other significant players in this downturn, included Bharti Airtel, M&M, SBI, Infosys, TCS, and Tata Motors. On a sectoral level, Nifty Bank along with Auto, Financial Services, IT, Media, Realty, Healthcare, and Oil & Gas sectors saw declines of up to 1.6%.
Market volatility and sectoral performance
The market's fear gage, Nifty VIX, jumped 8.57% to 12.99 amid the market downturn. However, not all sectors were in the red; Nifty Metal rose 1.5%, continuing its positive trend after China announced measures to stimulate its slowing economy. NMDC, Hindalco, and SAIL emerged as the top gainers in this index during the market turmoil.
Factors influencing the market crash
Foreign Institutional Investors (FIIs) have been shifting their focus to China, thanks to its recent economic stimulus measures. This move was a big reason behind today's dip in the market. Geopolitical tensions, uncertainty surrounding key US data, and US Federal Reserve Chairperson Jerome Powell's speech added to the mix. Plus, FIIs turned net sellers, offloading equities worth ₹1,209 crore on September 27, which further fueled the downturn.
