Stock Markets Crash in Worst Day Since June 2022 as Banking, Metal Stocks Tank

Mumbai: The Indian stock market witnessed a brutal sell-off on Wednesday, with the benchmark Sensex nosediving 1,628 points, its biggest single-day fall in over 18 months. The broader Nifty also suffered its worst single-day loss in percentage terms since June 2022, crashing 460 points.

Analysts attributed the intense sell-off to a combination of factors, including weak global trends and disappointing earnings from HDFC Bank. The broader banking sector took a massive hit, with HDFC Bank plunging over 8% after its December quarter results failed to meet investor expectations.

The carnage extended beyond banking, with metal and oil stocks leading the declines. Tata Steel, Kotak Mahindra Bank, Axis Bank, and ICICI Bank were among the major laggards on the Sensex. Investors expressed concerns about elevated valuations and potential delays in US Federal Reserve rate cuts, leading to a correction in the market.

It’s important to note that this plunge comes after a record-breaking rally in the previous days. Both the Sensex and Nifty had hit their all-time highs on Tuesday, prompting some analysts to predict a correction.