The benchmark indexes Nifty and Sensex fell deeper into the red in the afternoon on January 13 as broad-based selling escalated on the markets. Data suggest that over Rs 8 lakh crore of market capitalisation was lost during today’s session. The wider markets were the worst hit, with the mid and small-cap indexes underperforming the leading indices.
Global indications also impacted on market mood, with Asia-Pacific markets opening down following Friday’s US employment report, which dimmed expectations for immediate Federal Reserve rate reduction. The dollar index surged to its highest level since 2022, putting more pressure on the Indian rupee, which began at an all-time low of Rs 86.5 versus the dollar.
At around 2:50 p.m., the Sensex was down 1,065.11 points, or 1.38 percent, at 76,313.80, while the Nifty was down 349.65 points, or 1.49 percent, at 23,081.85. About 418 shares rose, 3235 fell, and 92 were unchanged.
According to Aishvarya Dadheech, CIO and Founder of Fident Asset Management, “Today’s fall is due to strong US labour market data (NFP) that has strengthened the dollar and derailed expectations of Federal Reserve rate cuts. This has led to a significant outflow of funds from emerging markets, including India, exacerbating pressure on the broader market.”
Mid- and small-cap stocks saw higher selling pressure, with losses of 4% and 4.5 percent, respectively. According to Dadheech, some pain in the mid and small-cap categories is likely to remain, while the Nifty and big caps may be oversold. The market’s path will be determined by the upcoming earnings season, which, if disappointing, has the potential to extend the bearish attitude.
All sectoral indexes finished in the red, with losses of more than 1%. The Nifty Realty index was the heaviest impacted, falling 6 percent, while the Nifty PSU Bank index fell more than 3 percent, extending its losing run to four sessions as dismal Q3 reports from select banks weakened confidence. Metal equities saw large losses, with Tata Steel, JSW Steel, and Vedanta leading the slump. The Nifty Auto index also fell about 3%, led by M&M, Maruti Suzuki, and Tata Motors. The FMCG and Bank indexes fell by 1.2 percent apiece.
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Sensex crashes 1065 points, Nifty below 23,100 as Indian markets end in red for fourth day
