Shocking Sensex Crash: Investors Devastated by ₹14 Lakh Crore Wipeout – Unraveling the Market Freefall

Last Updated: January 13, 2025, 18:52 IST

Indian Markets Tumble as Sensex Plunges Over 1,100 Points; Investors Lose Rs 14 Lakh Crore

In a dramatic session on Monday, Indian benchmark indices BSE Sensex and Nifty50 experienced sharp declines amid global economic concerns. The Sensex plummeted more than 1,100 points, bottoming at 76,250, while the Nifty50 slid 350 points to reach 23,047. This downturn led to a loss of Rs 14.54 lakh crore in market capitalization across BSE-listed companies, totaling Rs 416.08 lakh crore.

Key Factors Behind Market Decline:

1. US Economic Data and Interest Rate Outlook: A surprisingly strong US jobs report has raised fears of delayed interest rate cuts by the Federal Reserve. The US unemployment rate dropped to 4.1% in December, leading to increased expectations of prolonged higher rates, thus tightening global liquidity and affecting emerging markets like India.

2. Persistent Foreign Selling: Continuous sell-offs by foreign portfolio investors (FPIs) have compounded the situation. FPIs offloaded over Rs 21,350 crore worth of Indian equities in January, following substantial December outflows. The selling spree is linked to high valuations, weaker corporate earnings, and rising US bond yields.

3. Crude Oil Price Surge: With global crude oil prices hitting a 15-week high due to new US sanctions on Russia, India faces challenges as a major oil importer, potentially straining the fiscal balance and inflating investor concerns.

4. Weakening Rupee: The rupee reached an all-time low of Rs 86.27 against the US dollar. A robust dollar puts added pressure on the rupee, potentially leading to more capital outflows and increased import costs.

5. Global Market Selloff and Bond Yields: Asian markets mirrored US equity weaknesses, with broader global downturns affecting both equities and bonds. The US 10-year Treasury yield surged to 4.73%, raising the dollar’s strength and pressuring foreign institutional investors to continue selling.

Amid these challenges, India’s market environment remains volatile, with domestic and global headwinds persisting.

Original Source: https://www.news18.com/business/markets/sensex-crashes-1100-points-investors-lose-over-14-lakh-crore-why-is-market-falling-9187199.html
Category :
Tags:
Publish Date: 2025-01-14 03:17:00