Sensex Plummets by 1,062.2 Points, Nifty 50 Dips Below 22,000: India VIX Sees 6% Surge

• Domestic equity benchmark indices, the Sensex and the Nifty 50, dropped over 1 percent on Thursday’s session due to concerns over the general elections.
• The overall market capitalisation of BSE-listed firms dropped to nearly ₹393.34 lakh crore, resulting in investors losing nearly ₹7.35 lakh crore in a single session.
• Market analysts predict that the major Indian indices will continue losing momentum due to the ongoing uncertainty surrounding the general elections and subdued signals from large-cap companies’ Q4 results.

Amidst election uncertainties and disappointing Q4 results from large-cap companies, the Sensex and Nifty 50 indices drop over 1 percent, causing a significant loss in market capitalisation.

Market Performance Amidst Election Uncertainties

On Thursday’s session, the Sensex and the Nifty 50 extended morning losses and dropped over 1 percent. This decline was further exacerbated by the weekly Nifty options expiry, which led to increased volatility in the headline indices. The overall market capitalisation of BSE-listed firms dropped significantly, resulting in investors losing nearly ₹7.35 lakh crore in a single session.

Factors Contributing to Market Decline

The ongoing uncertainty surrounding the general elections and the subdued signals from large-cap companies’ Q4 results have been identified as the main causes of the market’s decline. This level of uncertainty has contributed considerably to the India VIX, a measure of volatility, reaching a 52-week high of 19, indicating fear within the market.

Top Nifty 50 Gainers and Losers

Despite the overall market decline, 7 stocks in the Nifty 50 index managed to settle in the green. These include Hero MotoCorp Ltd, Tata Motors Ltd, Mahindra and Mahindra Ltd, State Bank of India, and Bajaj Auto Ltd. On the other hand, Larsen & Toubro Ltd, Bharat Petroleum Corporation Ltd, Asian Paints Ltd, Coal India Ltd, and Oil and Natural Gas Corporation Ltd were among the laggards.

Sectoral Indices Performance

Amongst sectoral indices, all but Nifty Auto ended in red. Nifty Auto closed 0.78% higher, while others including Nifty Bank, Nifty IT, Nifty Media, Nifty Financial Services, Nifty Realty, Nifty FMCG, and Nifty Oil & Gas ended in red.

Experts’ Views on Markets

According to Vinod Nair, Head of Research at Geojit Financial Services, the broader market saw volatility due to Q4 earnings and general election worries, causing investors to remain on the sidelines. He expects this trend to continue in the short term as the market slid below the physiological level of 22,000.

Conclusion

Given the ongoing uncertainties surrounding the general elections and the disappointing Q4 results from large-cap companies, the Sensex and Nifty 50 indices are expected to continue their downward trend. Investors are advised to exercise caution and consult with certified experts before making any investment decisions.