MUMBAI, Jan 13: The equity benchmark Sensex plummeted by over 1,000 points, falling below the 77,000 mark on Monday, amid aggressive selling in global markets and a surge in international crude oil prices.
Strong US jobs data dampened expectations for early rate cuts, the rupee experienced its most significant single-day decline in almost two years, and non-stop foreign fund outflows further negatively impacted investor sentiment.
The 30-share BSE benchmark Sensex fell for the fourth consecutive session, decreasing by 1,048.90 points or 1.36 percent to close at 76,330.01. At one point during the day, it had dropped by 1,129.19 points or 1.45 percent to reach 76,249.72.
Meanwhile, the NSE Nifty fell by 345.55 points or 1.47 percent, finishing at 23,085.95.
Among the 30 blue-chip stocks, Zomato saw a decline of nearly 7 percent, along with Power Grid, Adani Ports, Tata Steel, NTPC, Tata Motors, Tech Mahindra, Mahindra & Mahindra, Asian Paints, Sun Pharma, and UltraTech Cement, which were also major underperformers.
Conversely, Axis Bank, Hindustan Unilever, Tata Consultancy Services, and IndusInd Bank were among the few stocks that gained.
“The global markets faced a considerable sell-off, leading domestic markets to respond similarly due to strong US payroll data indicating fewer rate cuts anticipated in 2025. This bolstered the dollar, increased bond yields, and made emerging markets less appealing. Recent GDP downgrades and decreasing earnings amid higher valuations are heavily influencing market sentiment,” stated Vinod Nair, Head of Research at Geojit Financial Services.
Asian markets, including Seoul, Shanghai, and Hong Kong, closed lower, while Japan’s markets remained closed for a holiday.
European markets were also in the red, as US markets ended negatively on Friday.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,254.68 crore on Friday. This month alone, foreign investors have pulled out Rs 22,194 crore from Indian equities.
“The US imposition of sanctions on Russian oil exports led to the rupee hitting a new low against the dollar, triggering a significant correction in domestic equity markets as foreign investors continued to withdraw from the local share market. The widespread selling across various sectors, coupled with massive exits from mid and small-cap stocks, further deteriorated sentiment.
“Elevated crude oil prices raise concerns about domestic inflation spikes, which could potentially delay any near- to medium-term rate cut expectations from the RBI,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The global oil benchmark, Brent crude, increased by 1.43 percent to USD 80.90 per barrel.
The rupee recorded its steepest daily decline in nearly two years, ending the session 58 paise lower at an all-time low of 86.62 (provisional) against the US dollar on Monday.
India’s industrial production (IIP) growth reached a six-month high of 5.2 percent year-on-year in November 2024, driven by increased festive demand and a resurgence in the manufacturing sector, according to official data released on Friday.
On Friday, the BSE benchmark Sensex dropped 241.30 points or 0.31 percent, closing at 77,378.91, while the Nifty fell by 95 points or 0.40 percent to 23,431.50. (PTI)
