Sensex Crashes Over 1,000 Points, ₹5 Lakh Crore Wiped Out in Market Rout

Mumbai: Benchmark indices experienced a steep drop on Friday, with investors anticipating key US jobs data that could influence the likelihood of interest rate cuts in the world’s largest economy.

The S&P BSE Sensex slumped 1,070.69 points to 81,130.47 by 2:30 PM, while the NSE Nifty50 tumbled 314.10 points to 24,831. Broader market indices, including midcap and small-cap stocks, also witnessed sharp declines, with volatility spiking over 8%.

The sell-off on Dalal Street wiped out nearly Rs 5 lakh crore in market capitalisation from BSE-listed firms, hitting sectors across the board. Major contributors to the plunge included Reliance Industries, SBI, ICICI Bank, L&T, Infosys, ITC, HCL Tech, and HDFC Bank. Notably, SBI shares dropped over 4% following Goldman Sachs’ sell recommendation.

Reliance shares fell over 1.8%, while Axis Bank, ICICI Bank, and SBI faced sharp declines. Top losers on the Nifty50 included HCL Tech, Tata Motors, ITC, NTPC, and BPCL.

The downturn in Indian markets was largely triggered by investor concerns ahead of a key US jobs report, which could shape the Federal Reserve’s stance on interest rate cuts. Recent remarks by Federal Reserve Chair Jerome Powell pointed to potential labour market weakness, raising the possibility of a rate cut in September. Analysts expect 165,000 new jobs and a 4.2% unemployment rate, but fears of a deeper-than-expected cut are rising.

Recent Reserve Bank of India figures showed an 11.7% rise in deposits and a 15% increase in bank credit, leading to worries over liquidity constraints.