Mumbai: Indian stock markets witnessed a heavy selloff on Thursday, wiping out about Rs 10.42 lakh crore from investors’ wealth in terms of market capitalisation. Rising crude oil prices, foreign fund outflows and interest rate concerns triggered widespread selling.
The BSE Sensex fell 1,230.39 points, or 1.69 per cent, to 71,408.31 at 3:08 pm. The NSE Nifty 50 dropped 416.45 points, or 1.84 per cent, to 22,186.60 at the same time, slipping below the crucial 22,200 level.
Crude oil prices climb
Brent crude rose more than 3 per cent to around $103 per barrel amid escalating tensions in West Asia. Concerns over oil shipments through the Strait of Hormuz raised fears of higher import costs, inflation and pressure on corporate profits.
Foreign investors continue to sell
Foreign institutional investors remained net sellers, adding to already weak market sentiment. According to the supplied figures, foreign investors sold Indian equities worth over Rs 6,100 crore on Wednesday. Continued withdrawals have reduced investor confidence and intensified selling across sectors.
RBI rate hike raises concerns
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 per cent on Wednesday. Its policy stance shifted from neutral to calibrated tightening, raising concerns about further increases in borrowing costs. Higher interest rates could affect corporate expansion, consumer demand and profitability.
Global markets add pressure
Weakness across Asian and US markets further unsettled investors. Japan’s Nikkei, South Korea’s Kospi, Shanghai and Hong Kong markets traded lower. Elevated US Treasury yields and concerns about another Federal Reserve rate increase added to the uncertainty.
Adani stocks decline sharply
Adani Group shares faced intense selling pressure, worsening the broader market decline. Adani Enterprises dropped around 8 per cent, while Adani Green Energy plunged nearly 9 per cent. Adani Ports declined over 4 per cent, Adani Power fell approximately 6 per cent, and Adani Energy Solutions lost more than 5 per cent.
Also Read:RBI Hikes Repo Rate To 5.5%, Borrowers Face Higher Loan Costs
Nifty Metal slipped over 3 per cent, while Nifty Energy declined around 2 per cent.
Payment stocks under pressure
Paytm and One MobiKwik declined around 7 per cent each, while Pine Labs slipped 3.1 per cent. Reports suggesting a possible delay in implementing merchant fees on certain digital payments added to investor concerns.
Market participants will closely monitor crude oil prices, foreign investor activity and global interest rate developments for signs of recovery.