Key Takeaways:
- SENSEX and NIFTY suffered one of the worst declines in two years, plunging over 4.5% for the week.
- FIIs (Foreign Institutional Investors) sold ₹40,000 crore worth of Indian equities, dragging the market down.
- Reliance Industries, along with BPCL, Asian Paints, and Bajaj Auto, were among the top losers.
- Global tensions, particularly in West Asia, and shifts to cheaper markets like China, contributed to the selloff.
Market Crash Breakdown 💥
The Indian stock market faced relentless selling pressure this week, with both the SENSEX and NIFTY witnessing their worst weekly performance since 2022. In just four days:
- SENSEX nosedived by 3,883 points, while
- NIFTY50 dropped by 1,164 points to settle around the 25,000 levels.
The crash was largely driven by the exit of FIIs, who moved ₹40,511 crore out of Indian markets, favoring cheaper valuations in China and Hong Kong following Chinese stimulus measures.
What Triggered This Sell-Off? 🤔
- West Asia Conflict: The escalating tension in Israel and Lebanon has shaken investor confidence, sparking fears of higher oil prices and economic uncertainty.
- FII Exodus: FIIs fled Indian markets in favor of Chinese stocks, which rose by 22% last week after the country announced stimulus packages and reported improved corporate earnings.
- Weak Domestic Data: India’s weak manufacturing PMI and disappointing infrastructure output numbers added to the negative sentiment, amplifying the market selloff.
Sector Impact: Who Lost Big? 🏦
- Energy, Auto, and Realty sectors were hit hardest. Key losers include:
- Reliance Industries: Dropped more than 9% amid concerns over crude oil supply due to the West Asia conflict.
- Asian Paints, Bajaj Auto, and BPCL: All lost over 7% this week.
- Hero MotoCorp, Eicher Motors, and Shriram Finance: Each fell by more than 7% on continued FII selling.
On the brighter side:
- JSW Steel: Defied the trend, gaining 3.22% for the week, benefiting from China’s economic stimulus.
What to Expect Next Week? 🔮
The ongoing Israel-Lebanon conflict, spiraling crude oil prices, and the start of earnings season next week will likely dictate the market’s movement. With volatility expected to remain high, investors are bracing for more turbulent times ahead.