Stock market today: BSE Sensex, Nifty50 plunge as Rs 3.15 lakh crore wiped off! Top reasons why bears growled

Stock market today: BSE Sensex and Nifty50, the benchmark equity indices, closed lower on Monday due to cautiousness among investors ahead of key domestic and US inflation data.
The BSE Sensex declined by 617 points or 0.83% to settle at 73,502, while the NSE Nifty dropped by 161 points or 0.72% to end at 22,332. The market capitalisation of all listed companies on the BSE declined by Rs 3.15 lakh crore to Rs 389.66 lakh crore, according to an ET report.
Power Grid Corp and Tata Steel were the top laggards among blue-chip stocks, falling over 2% each.Other stocks like SBI, IndusInd Bank, NTPC, and HDFC Bank also closed lower. However, Nestle India, Bajaj Finserv, Asian Paints, and Tech Mahindra closed with gains.
The small-cap stocks, which are more domestically-focused, lost 2%, underperforming the benchmarks. The mid-cap stocks dropped by 0.4%.
NLC India shares closed nearly 7% higher after the company’s offer for sale (OFS) opened for retail investors. RVNL shares also closed over 3% higher after the company secured four orders worth Rs 2,092 crore.
In terms of sectors, Nifty Bank, Media, Metal, Realty, and Oil & Gas closed over 1% lower, while Nifty Pharma and Healthcare ended higher.
The market breadth favored the bears, with 3,039 stocks declining, 924 gaining, and 118 remaining unchanged on the BSE.
According to Vinod Nair from Geojit Financial Services, the global market sell-off and uncertainty over rate cuts have impacted domestic market sentiment. The stronger-than-expected US nonfarm payroll data and caution ahead of the release of US inflation data have kept investors on edge. The broader market has underperformed due to valuation concerns, and investors are shifting towards safe haven assets like gold.
Rupak De, Senior Technical Analyst at LKP Securities, said that although Nifty has been fluctuating within an ascending channel, the overall trend remains bullish. In the short term, Nifty could experience weakness and decline towards the range of 22,200-22,250.
In European markets, stock indexes were mostly in the red due to uncertainty over the economic outlook and US inflation data. The pan-European STOXX 600 was down 0.5%, London’s FTSE 100 was down 0.3%, and Germany’s DAX was down 0.7%.
In Asia, the Nikkei index fell 2.1%, while China’s Shanghai Composite rose 0.7%.
Oil prices extended last week’s losses on concerns about slow demand in China. Brent futures fell 0.2% to $81.96 a barrel, while US West Texas Intermediate (WTI) dropped by 0.2% to $77.8.
The Indian rupee strengthened against the dollar for a third straight session, closing at 82.7575. The rise was supported by dollar inflows, but the central bank likely intervened to limit the rally.

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