Here’s Why Sensex Plummeted 900 Points and Nifty Dipped Below 24,900: Shocking Stock Market Crash Today!
Indian Stock Market Experiences Significant Dip Amid Profit Booking and Regulatory Concerns
By [Your Name] – September 6, 2024, 12:54 PM IST
The Indian stock market faced a substantial downturn on Friday, with the BSE Sensex plummeting by 953 points (1.15%) to 81,248, while the Nifty dropped 286 points (1.13%) to 24,859 in intraday trading. This decline followed a period of profit booking by investors shortly after a recent rally had driven both indices to new highs earlier this week.
The market sentiment was further dampened by potential regulatory changes in the futures and options segment. According to Reuters, India’s market regulator, SEBI, is set to tighten derivative rules to elevate entry barriers and hike trading costs, aiming to curb retail speculation on risky contracts. Notably, SEBI plans to limit options contract expiries to one per exchange per week and nearly triple the minimum trading amount from 5 to 15-20 lakh rupees, despite resistance from traders and brokers.
Major contributors to the Sensex’s decline included heavyweights such as SBI, Reliance Industries, HCL Tech, ICICI Bank, Larsen & Toubro, and Infosys, each falling around 1%. Particularly, the State Bank of India’s share price saw a sharp 3% drop to Rs 794 per share intraday.
Sector-wise, the Nifty PSU Bank was the hardest hit, declining 2.36% in intraday trading, with Canara Bank, Bank of Baroda, Indian Overseas Bank, and PNB Bank each falling between 2-3%. Other sectors such as Nifty Oil and Gas, Metals, Media, and Consumer Durables also experienced losses ranging from 1-2%.
The broader market indices reflected this weakness, with the BSE SmallCap index dropping 0.74% after reaching an all-time high of 56,959 earlier in the day, and the BSE MidCap index falling by 1.23%.
Market experts cited significant profit booking as a primary reason for this downturn, with stretched valuations and liquidity issues in small and mid-cap stocks contributing to market fluctuations. G. Chokkalingam of Equinomics Research and V.K. Vijayakumar of Geojit Financial Services advised caution amidst stretched valuations, recommending investment in fairly valued quality stocks.
The Indian market’s decline mirrored a similar trend in global markets. In the US, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experienced downturns amid economic concerns. In Asia, Japan’s Nikkei and South Korea’s Kospi also fell, while Australia’s ASX 200 managed to rise slightly by 0.38%.
Analysts believe the upcoming US jobs data will significantly influence the near-term market trend, with potential Federal Reserve rate cuts hinging on this data. Despite this, the Indian economy shows robust performance with a 47% rise in FDI in Q1FY25 and declining Brent crude prices.
First Published: September 6, 2024, 11:25 AM IST
Original Story https://www.business-standard.com/markets/news/here-s-why-sensex-fell-900-pts-nifty-slipped-below-24-900-intraday-today-124090600281_1.html
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