September 24, 11:56Aaj Tak

Stock Market Crash: Sensex Index Falls by 1233 Points, Causing Investor Panic

A sudden crash occurred in the Indian stock market on Thursday, triggered by mass selling, which caused panic among investors. In the second half of the day, the Sensex index lost over 1200 points, while Nifty showed a significant drop of 390 points.

During trading, the Sensex slipped to the level of 73,595.21 with a sharp decline, while the Nifty of the National Stock Exchange (NSE) fell below the 23050 mark. Within hours, this correction led to billions of rupees in losses for investors.

Precursors to this crisis were weak signals received from American markets the previous day, Wednesday. On Wednesday, the Dow Jones and Nasdaq indices closed in negative territory.

There are four main reasons that contributed to this decline. Firstly, regulations from the IRDAI led to a fall in stocks in the insurance and financial services sectors. The IRDAI's proposal to set a cap on insurance distribution commission caused a sharp decline in fintech and insurance companies. For example, PB Fintech dropped by 20%, and large stocks such as Axis Bank, HDFC Bank, and Bajaj Finance declined by 2%–5%.

Secondly, there was an increase in bond yields. The yield on 10-year US Treasury bonds jumped to 5.11%, reaching the highest level in 19 years. This intensified concerns that the US Federal Reserve might keep interest rates higher than expected for longer. The rise in US bond yields prompted Foreign Institutional Investors (FIIs) to withdraw funds from the Indian stock market and redirect them to the US debt market.

Thirdly, the rise in crude oil prices. Geopolitical tensions between the US and Iran caused the price of Brent crude oil to exceed $102 per barrel, reigniting global inflation concerns. Since India imports over 85% of its crude oil needs, the price increase above $102 increases the risk of inflation and current account deficit (CAD) for the Indian economy.

Finally, weak signals from global markets. The mass sell-off of technology stocks in American markets on Wednesday, as well as sluggish trading in Asian markets, put pressure on Indian benchmark indices.

Market experts note that instability in the Indian market will persist until crude oil prices stabilize and US bond yields begin to decline. Retail investors are advised to maintain a cautious approach and avoid panic selling amid the current downturn.

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www.aajtak.inSeptember 24, 07:09

Stock Market Crash: BSE and NSE Indices Plummet, Raising Questions About NSE IPO Debut

On Thursday, as the trading session began on the stock market, a crash occurred. Both market indices plummeted. The BSE Sensex index, comprising 30 stocks, fell by more than 700 points from the opening, while the NSE Nifty index, moving in sync with the Sensex, also sharply declined. NSE Nifty lost over 200 points immediately after opening.

Amid this crash, many stocks, including shares of Reliance, HDFC Bank, Axis Bank, and Indigo, were in the red zone. Particular attention was drawn to the NSE IPO, which is set to debut at 10 am amidst this market turmoil.

At the start of trading on Thursday, the BSE Sensex opened at 74,272, lower than the previous close of 74,828. During the entire five-minute trading period, the Sensex began a rapid decline, reaching 74,120 with a drop of over 700 points.

As for the Nifty index, which consists of 50 stocks, it followed the example of the Sensex. Nifty opened at 23,221, below the previous close of 23,446, and then continued to fall, trading at 23,205, losing more than 200 points.

In the context of the stock market crash, shares of companies such as Reliance and HDFC Bank opened in the negative. Among the most heavily falling stocks in the BSE large-cap segment were Bajaj Finance Share (down 5%), Axis Bank Share (down 3.70%), Bajaj Finserve Share (down 3.50%), and Kotak Bank Share (down 2%).

A decline was also observed in the mid-cap category: Policy Bazar Share (down 10%), MFSL Share (down 9.10%), AU Bank Share (down 5%), IDFC First Bank Share (down 3.30%), and Yes Bank Share (down 2.60%).

Despite the devastating events in the stock market, the NSE shares debut will take place. This situation has caused concern among investors. It should be noted that the NSE IPO, valued at ₹22,561.57 crore, was open from September 17 to 21 and received a positive response from investors. Nevertheless, in the 'grey money' market, this IPO signals a sluggish listing, as the NSE IPO GMP is only about 2% just before listing.

The reasons for the stock market decline are linked to deteriorating sentiment in American and Asian markets. In the previous trading day, the Dow Jones fell by 250 points. This was due to US Treasury yields on twenty-year bonds reaching a two-decade high. Furthermore, crude oil prices continue to rise in the international market, trading above $100.

business-standard.comSeptember 11, 06:41

Sensex falls by 700 points, Nifty drops below 23,250; Nifty Metal declines by 2%

At the market open, Sensex and Nifty50 showed a sharp decline. Asian markets were falling amid rising bond yields and oil prices, which negatively affected investor sentiment.

Asian-Pacific region markets traded significantly lower, reflecting similar overnight movements on Wall Street. Traders assessed inflation prospects against the backdrop of high oil prices and rising bond yields. Japan's Nikkei 225 and South Korea's Kospi indices fell by 3% and 2.6%, respectively.

On Thursday, the Dow Jones and S&P 500 indices closed down by 0.6% and 0.58%, respectively, while the Nasdaq Composite finished the session down by 0.65%. The yield on the benchmark 10-year US Treasury bond hovered around the 5% mark, settling at 4.95% on Thursday.

Oil prices lost previously achieved gains after approaching the nearly $110 per barrel mark due to escalating tensions in the Middle East, impacting supply forecasts. Furthermore, Saudi Arabia informed OPEC that its oil production for the last month decreased to its lowest level since 1990. September futures on the International Exchange traded at $107.8 per barrel, down 1.09%.

Gold and silver futures declined by 0.84% and 1.5%, respectively, as interest rate hike expectations by the US Federal Reserve increased following data showing growth in the producer price index last month and revised July data.

Initial Public Offering Today

On Friday, subscriptions will open for Initial Public Offerings (IPOs) of Manika Plastech, Injecto Polymers, and Century Business Media. The second day of subscription will be open for IPOs from Veegaland Developers, Maharaja & Speedex, Om Galaxy, Raksan Transformers, and Panchatv Bharat. In the main market segment, the final subscription day for IPOs from Rentomojo, Asset Reconstruction, Manipal Payment & Identity Solutions, Steamhouse India, LCC Projects, and Karamtara Engineering.

In the SME segment, the final subscription day will also begin for Infrax Renewable, Vinod Texworld, and Amtech Esters.

According to updates, Sensex opened 704 points or 0.94% lower at 74,198 points due to surges in oil prices and bond yields. Nifty was at 23,270 in pre-market trading, which was 207.50 points or 0.88% lower. In pre-market trading, Sensex fell by 593 points or 0.79% to 74,308.

The Rupee opened weaker against the US dollar, dropping 24 paisa to 95.69 from 95.45 at the end of Thursday, according to Bloomberg data. Wipro's CTO stated that the company's AI initiatives have boosted productivity equivalent to the output of 20,000 employees who were redeployed within the Indian IT company.

Vodafone Idea, State Bank of India, Texmaco Rail and Engineering, Punjab National Bank, HDFC Bank, YES Bank, and oil marketing companies are in focus for Friday's trading session.

GIFT Nifty at 23,333

GIFT Nifty was indicated at 23,333, which is 151 points lower. Oil prices recovered from the daily low of $107.29 per barrel amid heightened tensions in the Middle East, putting pressure on supply forecasts. September futures on the International Exchange reached $108 per barrel, up 0.34%, after previously reaching $110.