NEW DELHI: Investor wealth took a massive hit, as the stock market continued its downward spiral, eroding investors of Rs 25.31 lakh crore in just eight trading sessions.
The BSE benchmark Sensex tumbled more than 3 per cent during this period, dragged down by continuous
foreign fund outflows
, weaker-than-expected
corporate earnings
, and growing uncertainty over global trade tensions.
Over the last eight sessions, Sensex lost 2,644.6 points or 3.36 per cent, while the NSE Nifty fell by 810 points or 3.41 per cent.
On Friday, the 30-share Sensex dropped another 199.76 points, 0.26 per cent, closing at 75,939.21, marking its eighth straight day of decline.
Pressure selling weighing down market
The relentless selling pressure has severely impacted market capitalisation, with the total valuation of BSE-listed firms plunging by Rs 25,31,579.11 crore to Rs 4,00,19,247 crore.
“The gloomy mood continued as investors are perturbed by lingering foreign fund outflows,”said Prashanth Tapse, senior VP (research) at Mehta Equities Ltd.
Tariff war jitters return
Investor confidence has been weakened as US President Donald Trump reaffirmed his decision to impose reciprocal tariffs on trade partners, including India.
“Investor sentiment took a hit after Trump reiterated his stance on tariffs, increasing uncertainty over trade policies. This could further weaken investor confidence in emerging markets like India,” said Vishnu Kant Upadhyay, AVP (research & advisory) at Master Capital Services.
Weak earnings and FII sell-off weigh on markets
Corporate earnings for the December quarter also failed to impress, particularly in the mid- and small-cap segments. Several sectors shown weaker-than-expected recovery, raising concerns over high valuations.
“The risk-averse sentiment continues to rule investors’ minds as corporate earnings are significantly lower than the market expectations during the start of the year, especially for mid and small caps. Muted earnings trend, INR depreciation along with external factors like tariffs are expected to keep the sentiments weak in the near term, which could further push FIIs outflows,” said Vinod Nair, head of research at Geojit Financial Services.
Key stock movements
Among the blue-chip stocks, Adani Ports fell over 4 per cent, while UltraTech Cement, Sun Pharma, IndusInd Bank, NTPC, and Tata Steel were also among the major losers.
On the other hand, Nestlé, ICICI Bank, Infosys, Tata Consultancy Services, and HCL Tech managed to gain despite the broader sell-off.
The BSE small-cap index sank 3.24 per cent, while the mid-cap index dropped 2.59 per cent. Sector-wise, services, industrials, capital goods, power, utilities, and realty all declined sharply, with losses ranging between 2 and 3 per cent. The IT sector was the only bright spot in an otherwise weak market.
At the close of trade, market breadth remained highly negative, with 3,320 stocks declining, just 681 advancing, and 82 remaining unchanged on the BSE.
With weak earnings, global trade tensions, and persistent foreign fund outflows, investors may have to brace for further volatility in the near term.
