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Bloodbath on Dalal Street as Sensex tanks by 1,000 points. Why did market crash?
Sensex saw a major crash of over 1000 points on Tuesday, while Nifty was down by over 300 points.
There was bloodbath in the Indian stock markets on Tuesday, with Sensex falling more than 1,000 points.
BSE Sensex ended the day at 70,370.55, a decline of 1.47%, while Nifty slid 333 points to 21,238.
The markets were closed on Monday for the consecration ceremony of the Ram Lalla idol inside the newly-constructed Ram temple in Ayodhya.
The Sensex hit a one-month low in intra-day trade.
The markets witnessed a massive spike earlier this month, but have been struggling to keep up since. Both the benchmark indices fell for three days straight last week, seeing a slight recovery on Friday. However, a major decline was witnessed on Tuesday for five primary reasons, listed below.
5 reasons why Sensex, Nifty fell on Tuesday
HDFC shares continue to tank
HDFC Bank shares contributed hugely to the drop in NSE Nifty and Nifty bank on Tuesday, with the stock falling 3 percent. The steep decline in the HDFC Bank share price alone contributed to 1/3rd of the fall in the stock market today.
RIL shares tumble
Reliance Industries, India's most valued company, saw its shares fall 2 percent today, leaving the stock market in massive turmoil. Mukesh Ambani's Reliance became the second biggest contributor in today's stock market crash.
FII selling
Foreign institutional investors (FII) ended up selling Indian equities worth more than ₹23,000 crore in January 2024, according to SEBI date, which is why the last two weeks have been turbulent for the stock market.
Global tensions on the rise
The Israel-Hamas war and escalating tensions in Gaza have had a major impact on the crude oil prices and exports via Red Sea this month. Market experts believe that the hampering of imports and exports is leading to increased strain on the stock market.
Technical tensions
Nifty 50 has dwindled in the 21,500-21,700 segment for some time now, but slipped below 21,500 on Tuesday. Further, analysts believed that Nifty and Nifty Bank will continue to fall due to mounting selling pressures, expected to last for the next couple of weeks.
