Benchmark stock market indices plunged on Tuesday, leading to massive losses for investors on Dalal Street.
Investors on Dalal Street lost nearly Rs 4 lakh crore on Tuesday as the benchmark indices, S&P BSE Sensex and NSE Nifty50, fell sharply during intraday trade.
The Sensex plummeted by 587 points or 0.81 per cent, reaching 72,161 in late morning trading, while Nifty50 dropped by 186 points or 0.84 per cent to hit the 21,869 mark.
This decline was largely driven by weakness observed in consumer, IT, and energy stocks.
The Bombay Stock Exchange’s market capitalisation suffered a loss of around Rs 3.8 lakh crore. To be precise, the BSE’s market cap decreased by Rs 3.86 lakh crore to Rs 374.93 lakh crore, compared to the previous session’s valuation of Rs 378.79 lakh crore.
TCS, Reliance see big drop
Several prominent stocks including Tata Consultancy Services Ltd (TCS), Reliance Industries Ltd (RIL), L&T, Infosys, HUL, ITC, Nestle India, HCLTech, and Tata Motors contributed to the stock market’s downturn.
Consumer, IT, and energy stocks also witnessed a slump. All 15 sector gauges compiled by the National Stock Exchange (NSE) were trading in the red, with sub-indexes like Nifty FMCG, Nifty Consumer Durables, Nifty IT, and Nifty Oil & Gas experiencing significant declines.
TCS witnessed a drop of about 3 per cent, the most on the Nifty, following Tata Sons’ announcement of a stake sale worth over Rs 9,000 crore at a 3.7 per cent discount. This move also impacted the IT index (Nifty), which recorded a slide of 1.85 per cent, the most among major sectors.
Meanwhile, foreign institutional investors (FIIs) sold shares worth Rs 2,051.09 crore on a net basis during the previous session, while domestic institutional investors (DIIs) bought shares worth Rs 2,260.88 crore, according to exchange data. This also triggered higher volatility on Dalal Street.