Indian equity markets plunged sharply on Thursday, with the BSE Sensex tumbling 555.95 points to close at 81,159.68 and the NSE Nifty falling 166.00 points to 24,890.85. The steep selloff erased an estimated ₹4 lakh crore from investor wealth in a single session.
Key Drivers of the Decline
Global economic uncertainty weighed heavily on sentiment after mixed US GDP data and renewed concerns over interest rates. Foreign Institutional Investors (FIIs) turned net sellers, offloading ₹8,500 crore in equities. Domestic factors such as rising crude oil prices and inflationary pressures further dampened investor confidence.
Sectoral Impact
- Banking: Nifty Bank fell 145 points, led by declines in HDFC Bank and ICICI Bank.
- IT: The Nifty IT index dropped 1.8%, with TCS and Infosys under pressure.
- Midcaps & Smallcaps: BSE MidCap and SmallCap indices slid 330 and 400 points, respectively, indicating broad-based selling.
Heavyweight Stocks
Reliance Industries contributed 75 points to the Sensex fall, while HDFC Bank chipped in a 60-point decline. Other major laggards included L&T, Mahindra & Mahindra, and ONGC, each losing over 2% intraday.
Market Outlook
Analysts caution that volatility may persist as investors brace for key domestic macro releases, including August industrial production and retail inflation data. “A correction was overdue after the recent rally. Short-term consolidation around 80,000 levels seems likely,” said market strategist Ritu Gupta of Prabhudas Lilladher.
Trading Activity
The total market turnover on BSE reached ₹3.2 lakh crore, reflecting heightened trading activity. Advancers were outnumbered by decliners at a 1:3 ratio, underscoring the prevailing bearish mood.
Moving Forward
Traders will closely watch global cues, especially US Federal Reserve minutes due this week, and domestic economic indicators to gauge the next market direction. Defensive sectors such as FMCG and utilities may offer relative stability amid ongoing volatility.
