Mumbai: India’s benchmark indices, S&P BSE Sensex and NSE Nifty 50, faced their longest losing streak in eight months. Sensex dropped 811.19 points to 63,237.87, and Nifty 50 fell below 18,900, shedding 246 points.
The broader market followed suit, with Nifty Midcap 100 and Smallcap 100 indices declining over 2 percent, while India VIX surged 10 percent, indicating heightened market volatility.
Various sectoral indices, including Nifty Bank, Nifty Financial Services, and Nifty IT, saw losses between 1.3 percent and 1.7 percent, with Nifty Media and Nifty Realty hit the hardest, declining over 2.4 percent.
Amid the downturn, Axis Bank and HCLTech were notable gainers.
The market correction was expected due to persistent declines in recent sessions, driven by global market weakness, rising US Treasury yields, geopolitical tensions, and monthly F&O expiry.
IT stocks were particularly affected, fearing potential interest rate hikes due to US Treasury yield increases. Disappointing Q2 results from major IT firms added to the market’s subdued sentiment, with Tech Mahindra facing a drop of over 3 percent.
Another factor was the fall in Adani Group stocks as India’s accounting regulator, NFRA, scrutinized one of the group’s auditors.
The Nifty Financial Services index saw a sharp downturn, largely due to the decline of Bajaj Finance and Bajaj Finserv, both down by nearly 3 percent.
Global stocks, led by the US, also declined, impacting Indian market sentiment. With the US 10-year bond yield nearing 5 percent, foreign investors engaged in selling activities.
Ongoing global conflicts, like the Israel-Hamas war, raised concerns about potential disruptions to global growth, impacting nations like India, heavily reliant on oil imports.