In a turbulent week for the Indian stock market, investors suffered a massive loss of Rs 24.69 lakh crore in cumulative wealth over the past four trading sessions, driven by weakened investor sentiment, rising global crude oil prices, foreign fund outflows, robust U.S. employment data, and a sharp decline in the rupee.
The BSE Sensex saw a sharp decline of 1,869.1 points, or 2.39%, during this period. On Friday, the index continued its downward trajectory, falling 1,048.90 points (1.36%) to close at 76,330.01.
The total market capitalization of BSE-listed companies dropped significantly by Rs 24,69,243.3 crore to Rs 4,17,05,906.74 crore ($4.82 trillion). On Monday alone, investor wealth eroded by Rs 12.61 lakh crore.
Factors Behind the Decline
- Foreign Fund Outflows: Foreign institutional investors sold over Rs 20,000 crore this month, fueling negative sentiment.
- Rupee Depreciation: The Indian rupee hit its largest single-day decline in nearly two years, driven by stronger-than-expected U.S. non-farm payroll data and a robust dollar index.
- Rising Oil Prices: Brent crude prices surged by 1.43%, reaching $80.90 per barrel, amid expanded U.S. sanctions disrupting Russian crude supplies.
Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services, said, “The firm U.S. employment data has raised concerns about delayed rate cuts, while a strong dollar index and rising crude prices have added to the global uncertainties.”
Broader Market Impact
On the BSE, 3,562 stocks declined, while only 555 advanced, and 131 remained unchanged. Among the 30 major stocks, Zomato plunged by over 6.50%, while other significant losers included Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors, and Asian Paints.
Additionally, 508 stocks touched their 52-week lows, and only 120 achieved one-year peaks. The midcap index dropped by 4.17%, and the smallcap index declined by 4.14%.
All sectoral indices ended in the red, with realty taking the hardest hit, down 6.59%, followed by utilities (4.38%), services (4.35%), and power (4.23%).
With ongoing global uncertainties, continued foreign fund outflows, and pressures on the rupee, market participants remain cautious about near-term prospects.
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