The domestic stock market witnessed a significant slump on Monday, January 13, with major indices opening lower across the board. The Sensex saw a sharp fall of nearly 800 points, while the Nifty declined by 225 points. The Bank Nifty also took a hit, falling by 460 points.
At the opening bell, the Sensex was down by 749 points, starting at 76,629, while the Nifty plunged by 236 points, opening at 23,195. The Bank Nifty, reflecting the broader weakness in the market, opened at 48,264, down by 470 points. In addition, the Indian rupee weakened by 24 paise, opening at a new record low of 82.21 against the US dollar, further adding to the market’s negative sentiment.
This sharp decline in the Indian market mirrored global trends, especially the impact of US market performance. On Friday, the US stock markets experienced a sharp downturn, with the Dow Jones falling nearly 700 points, and the Nasdaq dropping by 320 points. The positive expectations surrounding rate cuts following the latest employment data failed to materialize, causing investor sentiment to take a hit. The Indian market reflected this sentiment, with the GIFT Nifty showing a significant drop of 188 points, signaling a negative start to Monday’s trading session.
Institutional investors’ behavior also reflected the prevailing market conditions. Foreign Institutional Investors (FIIs) continued to show a bearish outlook, selling over Rs 7,100 crore in cash, index, and share futures on Friday. In contrast, Domestic Institutional Investors (DIIs) remained more optimistic, continuing their buying spree for the 18th consecutive day, purchasing around Rs 4,000 crore in total.
The rupee’s fall to a new low of 82.21 against the US dollar added to the pressure on the market, as global economic uncertainties weigh heavily on the currency.
The global market weakness also extended to other Asian markets, with Japanese markets closed for the day. The overall risk-off sentiment was evident, as investors around the world braced for further uncertainty in the coming days.
The early signs from the market indicate that this trend of volatility and downward pressure could persist, with key economic data and global market developments expected to influence investor behavior in the days ahead.
