Indian stock markets witnessed a brutal selloff on Wednesday, with the benchmark BSE Sensex crashing over 900 points within the first 15 minutes of trading. This swift decline wiped out a staggering Rs 2 lakh crore (almost $25 billion) from investors' wealth. The negative sentiment stemmed from a combination of factors, including:
- Gloomy Global Outlook: Fears of a potential recession in the global economy triggered a sell-off in international markets, which spilled over to the Indian exchange.
- Rising Oil Prices: International crude oil prices continued their upward climb, raising concerns about India's import bill and potentially impacting the profitability of domestic companies.
Indices in Red:
- BSE Sensex: Opened 960 points lower, marking a significant drop from its Tuesday closing.
- Nifty 50: Shed 250 points, mirroring the broader market weakness.
- Market Capitalization: The total market cap of all listed companies tumbled by Rs 1.91 lakh crore, bringing it down to Rs 373 lakh crore.
Sectoral Performance:
- Nifty Midcap 100: Declined 0.61%, reflecting the widespread selling pressure across various market segments.
- BSE Smallcap: Slipped 0.08%, suggesting some resilience among smaller firms despite the overall bearish sentiment.
- Nifty IT: Defied the downtrend, advancing 0.25%, led by gains in select technology stocks.
- Nifty Bank: Faced the brunt of the selloff, plummeting 2.50%, with banking giants like HDFC Bank losing over 6% in early trade.
Bright Spots Amidst the Gloom:
While the broad market witnessed a sharp decline, a few stocks, including TCS, HDFC Life, LTI Mindtree, and Hero MotoCorp, bucked the trend and traded in the positive territory.