The Indian stock market witnessed a sharp downturn on Monday, with both the Sensex and Nifty indexes plummeting over 1% amid a mix of global and domestic pressures. Strong employment data from the United States suggested fewer rate cuts in 2025, adding to concerns about tighter monetary policies.
Adding to the challenges, rising crude oil prices, a weakening rupee, and significant foreign capital outflows further dampened investor sentiment. The market sell-off resulted in a staggering loss of approximately ₹12 lakh crore for investors.
The Sensex closed at 76,330.01, falling by 1,048.90 points, or 1.36%, while the Nifty ended at 23,085.95, marking a decline of 345.55 points, or 1.47%. Heavy selling pressure was observed across sectors, particularly in real estate, public sector banks, metals, auto, and pharma. Realty stocks took a significant hit, with the sector declining over 6%.
Market experts attributed the decline to a ripple effect from global markets, which faced a broad sell-off. The robust US payroll data fueled concerns about prolonged monetary tightening, strengthening the dollar, raising bond yields, and reducing the appeal of emerging markets.
Rupak De of LKP Securities noted the growing bearish sentiment, saying, “Bears remained at the helm as the Nifty continued to breach crucial levels. The index slipped below its previous swing low on the daily chart, indicating increasing bearishness. However, it held the 23,000 mark, which remains a key level to watch. If the Nifty sustains above 23,000 over the next few days, it could signal a potential recovery. Conversely, a decisive fall below this level might trigger a deeper correction.”
Among the broader indices, the Nifty Bank fell by 692.90 points, or 1.42%, to settle at 48,041.25. The Nifty Midcap 100 plunged 2,195.35 points, or 4.02%, closing at 52,390.4. Meanwhile, the Nifty Smallcap 100 dropped 723.45 points, or 4.10%, to end at 16,922.10.
In terms of individual performances, companies like Zomato, Power Grid, Tata Steel, NTPC, Tata Motors, Tech Mahindra, and Sun Pharma were among the major losers in the Sensex pack. However, a few stocks, including Axis Bank, TCS, IndusInd Bank, and Hindustan Unilever Limited, bucked the trend to emerge as the top gainers.
Foreign Institutional Investors (FIIs) continued their selling streak for the sixth consecutive trading day, offloading equities worth ₹2,254.68 crore on January 10. In contrast, domestic institutional investors (DIIs) purchased equities worth ₹3,961.92 crore, offering some respite to the market.
The mixed cues, coupled with escalating challenges from both global and domestic factors, signal continued volatility in the near term, with market participants closely watching the 23,000 level on the Nifty for further direction.
– IANS
