Sensex, Nifty Crash: Indian stock market bled drastically on Wednesday, November 14, with Sensex nosediving by huge 1.5% and Nifty 50 toppling by 1.6%. All indices were choked up in deep red, with PSU bank and realty stocks underperforming the most. Amidst bearish trend in equities, India's volatility index surging by 5%. Midcap and small-cap stocks also faced the heat of sharp selloff.
Sensex Price:
During trading session of November 13, Sensex led by frenzied selling, declined by as much 1,141.88 points or 1.45%. After market hours, Sensex closed at 77,690.95 lower by 984.23 points or 1.25%.
Among top gainers with marginal upside were NTPC, Tata Motors and Infosys. However, majority of stocks were down with Tata Steel, M&M, Adani Ports, SBI, JSW Steel and HDFC Bank emerging as top losers with decline 2% to 3.5%.
BSE Bankex dipped by 1128.94 points or 1.94%. On BSE, a total of 4,067 stocks traded, and among them only 670 stocks advanced while 3,299 stocks declined. Rest 98 stocks were unchanged. Further, 147 stocks touched new 52-week high, while 175 stocks hit new 52-week low.
BSE-listed market cap stood at Rs 4,29,46,189.52 crore.
Nifty Price:
The 50-scrip benchmark underperformed its own counterpart, by falling as much as 373.85 points or 1.6%. After market hours, the index slipped by 324.40 points or 1.36% to close at 23,559.05. Bank Nifty shed 1,069.45 points or 2.09% to finish at 50,088.35.
Stocks like Britannia, Grasim, Tata Motors, Asian Paints, and NTPC were top gainers. While Hero MotoCorp, M&M, Hindalco, Tata Steel, and Eicher Motors were top bears.
One of the key reasons for market to enter into a sharp correction tone is foreign institutional investors selling bias in equities. Also, the latest CPI inflation data that jumped to a 14-month high, dampened sentiment as this could delay a rate cut cycle of RBI.
Why Stock Market Fell On Wednesday?
As per Prashanth Tapse, Senior VP (Research), Mehta Equities, with inflation once again rising sharply and breaching the RBI's comfort level, receding hopes of any major rate cuts in the near future by the central bank put the markets into a tizzy. Also, relentless FII selling in local equities, along with rising US bond yields and dismal corporate earnings show has prompted overseas investors to park their funds in relatively cheaper markets like China.
Similarly, Vinod Nair, Head of Research, at Geojit Financial Services said, relentless selling by FIIs amid weak corporate earnings and a sharp surge in domestic inflation to a 14-month high have further impacted investor sentiment, dashing hopes for a near-term rate cut by the RBI. Mid and small-cap stocks were the worst hit, while the Financials and Auto sectors also showed significant weakness.
Nair added, this trend is mirrored across all emerging markets, as markets are jittery about future US policy actions, including trade-related implications for the world economy, which is reflected in the strengthening US dollar and rising yields."
Bears Vs Bull! Indian Stock Market To Rise Or Fall On November 14?
Shrikant Chouhan, Head Equity Research, Kotak Securities said, "Technically, after weak open throughout the day market registered selling pressure at higher levels. In addition, bearish candle on daily charts indicating further weakness from the current levels. We are of the view that, the current market texture is weak but oversold hence; we could expect one quick intraday pullback rally from the current levels."
Sensex, Nifty Crashing Since 1 Month:
Indian stock market has been on bearish bandwagon since past 1 month. In week-on-week performance, Sensex plummeted by 2,060.20 points or 2.58%, while Nifty 50 fell 794.75 points or 3.26%.
Further, on-month-on-month basis, Sensex tumbled by 4,282.10 points or 5.22%, and that of Nifty crumbled by 1,568.90 points or 6.24%.
So far, in 2024, foreign institutional investors (FIIs) have pulled out a record Rs 2,64,659.03 crore. On the other hand, domestic institutional equities (DIIs) made record buying of Rs 4,65,761.81 crore in Indian stock market.
Apart from FIIs selling, CPI inflation came in at 6.21% in October 2024, surpassing RBI's upper tolerance limit of 6%. Also, the data was higher than market expectations, while it was the highest level in more than 1 year.
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