Dalal Street bleeds: Sensex tanks 1,000 points, Nifty falls below 22,000

Stock market crash: Sensex, BSE’s 30-share benchmark index, fell more than a thousand points or 1.45 per cent on Thursday to settle at 72,44.17 after the market reacted sharply to yesterday’s quarterly earning reports. 

The National Stock Exchange’s Nifty 50 closed 335 points or 1.5 per cent lower after breaking the key support level of 22,000. The benchmark index closed at 21,967, dragged down by market majors such as Larsen & Toubro (fell 6.16 per cent), Asian Paints (fell 4.64 per cent), BPCL (fell 4.43 per cent), Coal India (fell 4.39 per cent), and ONGC (fell 3.90 per cent). 

India VIX, the NSE index for short-term volatility in Indian markets, shot up by 6.55 per cent, indicating major uncertainty among investors. 

All Nifty sectoral indices traded in red except Nifty Auto which was up by 0.78 per cent driven by strong gains in Hero Moto Corp (up by 3.19 per cent), Tata Motors (up by 1.77 per cent), Mahindra & Mahindra (up by 1.52 per cent), and Bajaj Auto (up by 1.04 per cent).  

Hero MotoCorp’s share was driven by its strong financial performance for the fourth quarter of FY24. The leading two-wheeler manufacturer reported its Revenue from Operations for the quarter, reaching Rs 9,519 crore, reflecting growth of 15 per cent compared to the previous year.

Amid the strong bearish market sentiment, midcap and smallcap stocks faced strong selling pressure as the Nifty Midcap 100 and Nifty Smallcap 100 indices fell 1.93 per cent and 2.72 per cent respectively. Top losers for the Midcap 100 include Piramal Enterprises, NHPC Limited, and NMDC while Smallcap 100’s losing stocks include Manappuram Finance which fell more than seven per cent and AngleOne which ended 5.72 per cent lower. 

Talking about strong volatility in the market, Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. said, “The period leading up to election results often introduces volatility into the stock market as investors weigh the potential implications of different electoral outcomes. Today's market decline is a prime example of how this volatility can manifest.” 

Gour advises investors to prioritise risk management by carefully assessing their portfolios. “Diversification across various sectors and asset classes can help cushion the impact of election-related uncertainty on specific holdings.”