The Sensex sunk more than 1048 points and closed below the 77000 level on Monday over apprehensions of the US Federal Reserve halting its rate cutting cycle, rising crude oil prices and the rupee plunging past the 86 mark.
Fears of corporate India posting another quarter of tepid earnings, persistent FPI sales and growth concerns also weighed on investor sentiment.
Falling for the fourth straight session, the 30-share Sensex collapsed 1048.90 points, or 1.36 per cent, to end at 76330.01.
During the day, it tanked 1129.19 points, or 1.45 per cent, to a low of 76249.72. On the NSE, the Nifty lost 345.55 points, or 1.47 per cent, to close at 23085.95.
The fall was more steep in the broader markets with the BSE midcap index crashing 4.17 per cent and the smallcap gauge by 4.14 per cent. Similarly, all the sectoral indices ended in the red with losses of up to 6.59 per cent.
From the Sensex group, Zomato cracked the most by nearly 7 per cent. It was followed by Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors, Tech Mahindra, Mahindra & Mahindra, Asian Paints, Sun Pharma and UltraTech Cement, which lost up to 4.09 per cent of their market value. In contrast, Axis Bank, Hindustan Unilever, Tata Consultancy Services and IndusInd Bank notched up gains of up to 0.78 per cent.
Nandish Shah, deputy vice-president, HDFC Securities, who attributed Monday’s crash to global factors, pointed out that the US jobs report released last Friday has dampened investor’s hopes of early interest rate cuts by the Federal Reserve.
“The global markets witnessed a significant sell-off, prompting a similar response in domestic markets due to strong US payroll data suggesting fewer rate cuts in 2025. This has strengthened the dollar, driven up bond yields, and made emerging markets less attractive.” Vinod Nair, head of research, Geojit Financial Services, said.
“Recent GDP downgrades and slowing earnings amidst higher valuations are weighing heavily on market sentiment.”