Sensex plunges 1049 points, Nifty down 345, ₹12 lakh crore investor losses. Axis Bank among top gainers.
Closing Bell: Indian stock markets saw a significant decline on Monday (January 13) due to weak global market trends and domestic economic uncertainties. Both the BSE Sensex and NSE Nifty remained in the red throughout the day's trading.
Sharp Decline in Sensex and Nifty
The BSE Sensex opened at 76,535.24, plunging 844 points on the first trading day of the week. During the day's trading, it fell as low as 75,406 before closing at 76,330, down 1049 points, or 1.36%.
Similarly, the Nifty50 also opened in negative territory, falling as low as 23,045. It ultimately settled at 23,085.95, down 345.55 points, or 1.47%.
Top Losers: Significant Share Price Drops
Among the 30 Sensex-listed companies, Zomato's stock closed down over 6%. Other notable declines were observed in Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors, Mahindra & Mahindra, Asian Paints, HDFC Bank, Bajaj Finance, and Kotak Mahindra Bank.
Top Gainers: Positive Performances
However, some stocks closed in the green. These included Axis Bank, IndusInd Bank, Tata Consultancy Services, and Hindustan Unilever.
Four Key Reasons Behind Market Decline
- Foreign Investor Selling Pressure: A strengthening dollar index and a depreciating rupee have prompted continuous foreign investor withdrawals from the domestic market.
- Concerns about Weak Q2 Results: Uncertainty surrounding the Q3 results, following disappointing Q2 performance, has amplified investor anxieties.
- Strong US Job Data: Robust employment figures in the US have reduced the likelihood of interest rate cuts, negatively impacting market sentiment.
- Brent Crude and Rupee Weakness: Brent crude prices have climbed to near US$81 per barrel, exacerbating the ongoing rupee depreciation.
Investor Losses Reach ₹12 Lakh Crore
The overall market capitalization of BSE-listed companies decreased to ₹4,21,29,900 crore on Monday, down from ₹4,29,67,835 crore on Friday. This translates to a significant loss of ₹12 lakh crore for investors.
Global Market Outlook
Asian markets also witnessed declines. The South Korean Kospi, the Hong Kong Hang Seng, and the Chinese Shanghai Composite Index traded in the red. Japanese markets were closed due to a holiday.
US markets also experienced losses on Friday. The Dow Jones fell by 1.63%, the S&P 500 declined by 1.54%, and the Nasdaq dropped by 1.63%.
Friday Market Performance
On Friday, the BSE Sensex closed at 77,378.91, down 241.30 points (0.31%). The Nifty50 also fell by 95 points (0.4%) to close at 23,431.
Market Outlook: What's Next?
Experts anticipate volatility in the Indian market until the quarterly earnings reports are released and global markets stabilize. Investors are advised to proceed with caution.
