Black Thursday on Dalal Street: Sensex Plunges 1,053 Points, Over ₹10 Lakh Crore Wiped Out in a Single Day
RBI's shifted stance, crude oil above $104 and FII selling spoil market sentiment
Thursday's trading session was one investors will want to forget. The selling that began in the morning never let up, and the Sensex and Nifty both closed sharply lower. In this one session, roughly ₹10 lakh crore to ₹10.93 lakh crore of investor wealth was erased.
Closing Levels: Where the Indices Ended
The BSE Sensex fell about 1,053 points to close at 71,655. The NSE Nifty 50 dropped roughly 394 points to 22,232, well below the 22,500 mark.
At 3:05 PM the picture was worse. The Nifty was down 417.80 points (1.85%) at 22,185.25, and the Sensex was down 1,249.66 points (1.72%) at 71,389.04. This suggests the market recovered slightly from its lows in the final hour, but the damage remained deep.
Market Size Slips to ₹461 Lakh Crore
The combined market capitalisation of companies listed on the BSE fell to about ₹461 lakh crore, from ₹472.35 lakh crore on Wednesday. That is a one-day hit of more than ₹10 lakh crore. Different reports put the loss anywhere between ₹10 lakh crore and ₹10.93 lakh crore. Livemint had reported a loss of over ₹7 lakh crore during the session, which kept growing as the fall deepened.
Metals, Realty and Adani Group Under the Most Pressure
Metal and realty stocks took the heaviest beating. Adani Group shares also saw sharp selling, with some falling as much as 10%. Sectoral figures as of 3:05 PM were as follows:
- Nifty Metal: Down 3.56% (437.65 points) at 11,869.05, the weakest sector.
- Nifty Midcap 100: Down 2.53% (1,499.95 points) at 57,862.65.
- Midcap Select Nifty: Down 2.75% (377.90 points) at 13,379.30.
- Nifty Pharma: Down 2.52% (665.95 points) at 25,770.60.
- Nifty Private Bank: Down 1.11% at 26,815.20.
- Bank Nifty: Down 1.12% (618.15 points) at 54,437.40.
- Nifty IT: A marginal fall of 0.28% to 27,680.15. The sector had been providing support until the morning but ended in the red.
The Nifty Total Market index fell 2.15%, which shows the selling was not confined to one corner of the market. The entire market was hit.
Three Big Reasons Behind the Fall
1. RBI's Changed Stance
According to reports, the RBI has shifted its stance from "neutral" to "calibrated tightening" and has also signalled a possible repo rate hike. Expectations of higher interest rates make borrowing costlier for companies and reduce the flow of liquidity in the market. This fear was a major driver of investor anxiety.
2. Crude Oil Above $104
Amid tensions in West Asia, Brent crude rose above $104 per barrel. India imports a large share of its oil needs, so expensive crude adds pressure on inflation, the current account deficit and the rupee.
3. Continued Selling by Foreign Investors
Foreign institutional investors (FIIs) have been steadily pulling money out of Indian markets. Market commentators estimate that their selling was aggressive today as well, but confirmation will come only from official FII/DII data.
Movement in Select Stocks
Among the decliners: Unimech (5.80%), Optimus (5.10%), HFCL (5.00%), Chennai Petroleum and Azad (both 4.88%), Moneyview (3.84%) and Tata Power (2.99%).
Against the trend: Kenshie Electricals rose 5.86% to ₹1,351.05, PC Jeweller gained 5.71% to ₹13.89, and IFCI climbed 3.80% to ₹66.46. PNB held firm on heavy volume (1,89,15,535 shares), up 0.98% at ₹115.71.
What Should Investors Watch in Their Portfolios?
In volatile markets like this, investors commonly check a few basics. First, how much of the portfolio sits in midcaps and smallcaps, since that segment fell the hardest today. Second, whether any single sector, such as metals or realty, carries too much weight. Third, whether stop-losses are in place. Fourth, how much of the investment is funded through borrowing or margin. These are general precautions, not advice to buy or sell any stock.
What Will Matter Next?
Three things will be in focus in the coming days: further commentary from the RBI, the movement of Brent crude, and official FII data. Technically, the 22,200 level will remain important for the Nifty.
Disclaimer: This article is for information only and is not investment advice. Investments in the stock market are subject to risk. Please consult your financial advisor before investing.
