Market Freefall: Sensex Plummets Over 2200 Points Amid Global Turmoil

In a significant market downturn, 3,414 stocks declined on the BSE as the Sensex plunged 2,222.55 points. The fall was influenced by global market cuts and weak US employment data. Key losers included Kirloskar Brothers and Samvardhana Motherson International, while Glenmark Life Sciences and Cera Sanitaryware saw gains.

In a dramatic day for the stock markets, 3,414 stocks plummeted on the Bombay Stock Exchange (BSE), leading to a sharp decline in the Sensex by 2,222.55 points.

The 30-share BSE benchmark index nosedived by 2.74%, settling at 78,759.40. Intraday, it fell further by 2,686.09 points to touch 78,295.86, reflecting the global market sentiment.

Vinit Sambre, Head of Equities at DSP Mutual Fund, highlighted that the market slide was driven by sharp declines in Nikkei, Taiwan, and Korea, along with disappointing US employment data. This led to panic selling in the Indian markets, typically trading at high valuations.

Stocks like Kirloskar Brothers, Samvardhana Motherson International, Thermax, and Reliance Infrastructure experienced significant losses, while Glenmark Life Sciences and Cera Sanitaryware reported gains. Concerns about a looming US recession and geopolitical tensions in the Middle East further fueled market fears, according to Ajit Banerjee, Chief Investment Officer at Shriram Life Insurance Co.

The Bank of Japan's rate hike and decreased bond purchases, coupled with the anticipation of a US rate cut and a stronger Yen, led to an unwinding of Yen carry trades, adding to the market volatility.

All sector indices on the BSE ended in red, with the services index dropping by 4.56%, followed by utilities, realty, and capital goods sectors. The smallcap and midcap indices also suffered significant losses.

The NSE mirrored the BSE's downturn with 2,452 stocks falling, 332 advancing, and 74 remaining unchanged.

(With inputs from agencies.)