₹10 Lakh Crore Wiped Out from Indian Stock Market as Nifty and Sensex Drop 2% Amid Global Uncertainty

Indian stock markets took a significant hit on Thursday, with a massive ₹10 lakh crore being wiped out as investors grappled with rising geopolitical tensions. The Nifty 50 index recorded its steepest drop in two months, plunging 547 points to settle at 25,250, while the Sensex tumbled 1,769 points, closing at 82,497. The sell-off affected nearly all sectors, leaving the market in disarray as traders and investors reacted to the heightened uncertainties.

Market volatility surged, with the volatility index rising as much as 15% intraday before settling 10% higher, reflecting increased anxiety among market participants. The market breadth was heavily skewed toward declines, with the advance-decline ratio showing 1:4 in favour of the bears. Out of the Nifty 50 stocks, 47 ended in the red, with some of the heaviest losses reaching up to 5%.

Crude oil-sensitive sectors were hit hard, including paints, oil marketing companies, and airlines, as rising oil prices exacerbated the economic outlook. Stocks in these sectors faced sharp declines, contributing significantly to the broader market downturn. Automobile companies also saw their share prices fall as much as 5%, largely due to concerns over exports and softening demand in the domestic market.

One sector that stood out in Thursday's carnage was steel, with stocks like JSW Steel managing to post modest gains. An uptick in demand helped steel companies remain resilient, even as other sectors buckled under the weight of broader market losses. JSW emerged as a top performer in a challenging trading session.

The banking sector was not spared either, with the Nifty Bank index dropping 1,077 points to close at 51,845. Realty stocks, facing ongoing demand challenges, also suffered substantial losses, falling between 4% and 5%. Companies like Godrej Properties and DLF were among the worst affected, while public sector enterprises saw profit booking, with stocks such as OIL, IRCTC, and PFC among the major losers for the day.

Weak quarterly performance reports contributed to further downward pressure. Dabur India, for instance, saw its stock price drop by 7% following a disappointing quarterly update. Meanwhile, realty and public sector stocks continued to struggle, with many hitting fresh 52-week lows.

In a day marked by heavy losses, 66 stocks on the Bombay Stock Exchange (BSE) hit their 52-week lows. Despite the widespread sell-off, a few midcap stocks like Petronet LNG, Granules India, and Alembic Pharmaceuticals managed to register gains, offering some relief to an otherwise dismal trading session. Marico also posted marginal gains after its quarterly update beat market expectations.

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As global geopolitical tensions persist, the Indian stock market continues to face an uncertain outlook. The steep drop in both Nifty and Sensex highlights the growing concerns among investors about future market volatility and economic stability. For now, traders are closely watching external factors, including crude oil price movements and international conflicts, which are likely to shape market sentiment in the days to come.