Sensex Plunges 1.4% as Foreign Funds Sell Stocks Worth Rs 13,000 Crore

The Indian stock market experienced a significant downturn on Thursday, with key indices suffering substantial losses due to strong foreign fund selling. Major indices, including the Sensex and Nifty, suffered sharp declines. The Sensex lost 1,045 points or 1.4% to close at 71,593 points.

Meanwhile, the Nifty on NSE lost 371 points or 1.6% to close at 22,232 points.

The day's slide wiped out nearly Rs 10 lakh crore worth of investors' wealth. With the aggregate market capitalisation of companies listed on BSE at Rs 461 lakh crore, according to official data.

Read More: RBI Governor Sanjay Malhotra Downplays Impact of MDR Fee on UPI Transactions

In comparison, the Sensex had an eight-week losing streak, the longest in 25 years, which began when the index closed at 78,499 points in the week ended August 7. Since then, the index is now down a little over 6,900 points or 8.8%, with investors' wealth loss standing at Rs 32.3 lakh crore.

Foreign portfolio investors sold stocks worth nearly Rs 13,000 crore on a net basis. This marked one of the biggest single-session net outflows by FPIs in recent times.

This was one of the largest single-session net outflows by FPIs in recent times, further exacerbating the market's decline. The selling was also compared to a 16% year-to-date drop in sensex. With Nifty down 15%, Hang Seng in Hong Kong down nearly 10% while Shanghai Composite for mainland China is down 5.3%.

At the other end of the spectrum is Japan's Nikkei that's up 33% while Brazil's iBovespa is up 28% and technology-heavy Nasdaq Composite. Boosted by the strong rally in AI stocks, is up 17.6%.

Reliance Industries, HDFC Bank, and Bharti Airtel were among the leading stocks to suffer losses, contributing to the overall market decline. Experts warn that the market's decline is a cause for concern, and investors are advised to exercise caution in the coming days. The Indian stock market's performance will be closely monitored by investors and analysts in the coming days.

Also Read: RBI Makes Account Aggregators Interoperable, Facilitating Easier Access to Financial Info

As the market seeks to recover from this significant downturn.

As the market continues to navigate these challenges, investors will be watching closely for any signs of improvement or stabilization.

With the Sensex closing below its October 1 level of 71,910 points, the nine-week losing streak would be its longest on record.