Indian Stock Market Extends Losses for Fourth Consecutive Day; Sensex Plunges 548 Points, Nifty Closes Below 23,400.
Closing Bell: The downward trend in the Indian stock markets continued on Monday (February 10th). Amidst mixed signals from global markets, the Indian market registered a decline for the fourth consecutive day. The BSE Sensex and NSE Nifty are currently trading approximately 10% below their all-time highs.
Trump's Announcement Sends Shockwaves Through the Market
US President Donald Trump's announcement of new tariffs on all steel and aluminum imports into the US led to a sharp decline in metal stocks. Shares of Tata Steel, JSW Steel, and other metal companies fell significantly. This decision impacted domestic markets, causing substantial losses for investors.
Sensex and Nifty Performance
Sensex: The BSE Sensex opened at 77,840, down 19.36 points or 0.02% on Monday (February 10th). During trading, it slipped to 77,106 points. The Sensex finally closed at 77,311, down 548.39 points or 0.70%.
Nifty: The NSE Nifty opened at 23,522.45, down 37.50 points or 0.16%. After a day of trading, it closed at 23,381, down 178.35 points or 0.76%.
Reasons for Market Decline
US Tariff Policy: US President Trump stated on Sunday that he would retaliate against countries imposing tariffs on the US. Following China's imposition of retaliatory tariffs of 10-15% on US goods, Trump indicated further announcements on Tuesday or Wednesday.
Foreign Institutional Investor (FII) Selling: Foreign Institutional Investors (FIIs) have been consistently withdrawing funds from Indian markets. Until February 7th, FIIs had sold shares worth ₹10,179 crore in the cash market.
Sectoral Index Decline: Selling pressure was observed across almost all sectoral indices. Only the Nifty FMCG index showed a positive movement of 0.5%, while all other indices registered declines.
Impact of Reliance and HDFC Bank: The decline in shares of Reliance Industries and HDFC Bank, which hold significant weight in the market, also pulled down the Sensex and Nifty.
Investors Lose Over ₹7 Lakh Crore
Monday's (February 10th) decline resulted in losses exceeding ₹7 lakh crore for investors. The total market capitalization of BSE-listed companies fell to ₹4,17,71,803 crore on Monday, compared to ₹4,24,78,048 crore on Friday. This represents a decrease of ₹7,06,245 crore in the market capitalization of BSE-listed companies.
Market Performance on Friday
Sensex: The BSE Sensex closed at 77,860 on Friday (February 9th), down 97.97 points or 0.25%.
Nifty: The NSE Nifty closed at 23,560 on Friday, down 43.40 points or 0.18%.
Will the Decline Continue?
Experts suggest that uncertainty in global markets and FII selling may lead to continued volatility. Investors are advised to exercise caution and focus on long-term investment strategies.
