Crash after Morning Surge; Investors Poorer by Rs 8.5 Lakh Cr
After starting off strongly, the Indian equity markets witnessed a dramatic turnaround and ended significantly lower on Tuesday. The BSE Sensex plunged over 1600 points from its intraday peak, while the Nifty gave up 500 points to close in the red.
The benchmark indices opened higher but failed to hold on to the gains, sparking a sharp selloff across sectors. Heavy selling pressure was seen in banking, energy and FMCG stocks. At close, the Sensex was down 1030 points at 79,380 after touching an intraday high of 80,990.
Likewise, the Nifty 50 settled 343 points lower at 21,226. It had surged to 21,613 earlier in the day. The midcap index saw an even steeper 2200 point decline from its peak.
The market rout led to massive erosion of investors’ wealth. BSE market capitalization tanked by Rs 5.78 lakh crore to Rs 368.60 lakh crore against Rs 374.38 lakh crore in the previous session.
Banking stocks were the worst hit, with Nifty Bank plunging 918 points. Barring ICICI Bank, all index banking stocks closed lower. Among other prominent losers, Zee Entertainment tanked 27%, IRCTC slumped 7% and IOC shed 4.7%.
The sharp U-turn in sentiment follows the recent bull run that lifted indices to record highs. Analysts said the correction was overdue as valuations had surged, prompting investors to book profits in stages. The volatility highlights lingering uncertainty in global markets amid rate hikes and inflation.