Sensex tanks 2,500 pts, Nifty ends down 3.3% at 23,000; Rs 12 lakh crore wiped off
&imwidth=600&imheight=450&format=webp&quality=medium "Sensex tanks 2,500 pts, Nifty ends down 3.3% at 23,000; Rs 12 lakh crore wiped off")
Markets snapped a three-day winning streak and posted their sharpest fall in nearly two years. Photograph: (AFP)
Banking stocks led the decline, with HDFC Bank emerging as a key drag on the indices. The stock fell over 5% to around Rs 800 after part-time chairman Atanu Chakraborty resigned. Surging crude prices and a hawkish Federal Reserve stance also unsettled the investors.
The Sensex plunged nearly 2,500 points as Indian benchmark indices tumbled over 3% on Thursday and the Nifty 50 closed near the 23,000 mark. The market rout wiped out over Rs 11.5 lakh crore in the market capitalisation of all BSE-listed firms, dragging the total down to a little over Rs 427 lakh crore. The Sensex crashed 2,497 points to end at 74,207, while the Nifty 50 slumped 776 points to settle at 23,002 after briefly dipping below 23,000. Markets snapped a three-day winning streak and posted their sharpest fall in nearly two years. Market analysts claimed that surging crude prices and a hawkish Federal Reserve stance triggered the selloff. Besides, concerns around HDFC Bank also unsettled investors.
Crude oil prices surged past $111 per barrel, raising fears of a prolonged disruption, while developments at HDFC Bank added to investor nervousness, even as global cues remained weak after the US Federal Reserve signalled limited room for rate cuts.
Higher oil prices can push up inflation, weaken the rupee and hit corporate margins, putting pressure across sectors.
Banking stocks led the decline, with HDFC Bank emerging as a key drag on the indices. The stock fell over 5% to around Rs 800 after part-time chairman Atanu Chakraborty resigned, citing “certain happenings and practices” within the bank that were “not in congruence with my personal values and ethics”.
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Other banking stocks such as Axis Bank, ICICI Bank, and State Bank of India also traded lower, weighing on benchmark indices.
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IT stocks such as Infosys, TCS and Wipro remained under pressure amid weak global cues.
Aviation stock IndiGo fell over 3% as rising fuel costs threaten margins, highlighting the immediate impact of higher crude prices. Coal India was among the few stocks showing resilience, supported by higher energy prices.
The US Federal Reserve has kept interest rates unchanged while signalling a cautious stance, keeping global liquidity tight and reducing the appeal of emerging markets.
The Indian rupee weakened further, touching a record low of 92.63 against the US dollar.
