Sensex crashes by 1,000 points, Banking Stocks Take a Beating

The BSE Sensex fell by 1,053.10 points to settle at 70,370.55 on Tuesday's trading session, while the Nifty fell by 330.15 points to 21,241.65.The Nifty's notable losers included IndusInd Bank, Coal India, ONGC, Adani Ports, and SBI Life Insurance. Conversely, the gainers on the Nifty were Cipla, Sun Pharma, Bharti Airtel, ICICI Bank, and Dr Reddy's Laboratories. In terms of sectoral performance, all sectoral indices, except pharma, witnessed losses during the trading session. The pharmaceutical sector stood out as the only gainer among various sectors. The BSE Midcap and Smallcap indices both recorded a significant decline, each down nearly 3 percent. This comes after the markets remained closed on Monday, January 22, as the nation celebrated the consecration ceremony of the Ram Lalla idol inside the newly-constructed temple.

HDFC Bank shares contributed hugely to the drop in NSE Nifty and Nifty bank on Tuesday, with the stock falling 3 percent. The steep decline in the HDFC Bank share price alone contributed to 1/3rd of the fall in the stock market today. After tumbling over 1000 points as the market session nears its closing bell on Tuesday, the BSE Sensex hit its one-month low at 70,419. Notably, it was in January 2023 that Sensex hit its all time high at over 73,000.Nifty and Sensex both saw a massive spike earlier this month, and have been struggling to keep up since. Both the benchmark indexes fell for three days straight last week, seeing a slight recovery on Friday.Nifty 50 has dwindled in the 21,500-21,700 segment for some time now, but slipped below 21,500 on Tuesday. Further, analysts believed that Nifty and Nifty Bank will continue to fall due to mounting selling pressures, expected to last for the next couple of weeks.