Stock Market Crash Today: The BSE Sensex and Nifty50, India’s key stock indices, fell sharply on Wednesday. The BSE Sensex, India’s benchmark stock index, fell by 1,100 points to below 73,000. The Nifty, another significant index, too fell below 22,000 points.
The BSE Sensex ended the day at 72,761.89, down more than 900 points or 1.23%. The Nifty50 closed the trading day at 21,997.70, down nearly 330 points or 1.51%. The actual impact was felt in the smaller stock segment of the market. The smallcap index fell 5%, marking the most significant single-day decrease since December 2022. Midcaps fell 3%, while microcaps and SME stock indices fell almost 5%.
The companies that gained the most on the Sensex were ITC, ICICI Bank, Nestle India, Kotak Mahindra Bank, and Bajaj Finance, while the top losers were Power Grid Corp., NTPC, Tata Steel, Tata Motors, and JSW Steel. The companies with the most significant gains on the Nifty 50 were ITC, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, and Cipla. At the same time, the top losers were Power Grid Corp., Coal India, Adani Enterprises, NTPC, and Adani Ports & SEZ.
Meanwhile, on Wednesday, none of the sectoral indexes, with the exception of FMCG, finished in the green.
The Nifty Metal index fell the greatest, closing down 5.69%, next to Medai (down 5.62%) and Realty (down 5.32%). Oil and gas were next, closing down 4.87%, subsequently followed by auto (down 2.84%) and consumer durables (down 2.82%).
All other sectoral indexes were down except FMCG, which closed up 0.05%. Additionally, the BSE SmallCap index fell 5.11% and the BSE MidCap closed down 4.20%, reflecting the market’s sustained downward trend for the third day in a row.
Top reason Stock Market Crash Today
Selling in broader markets: Market regulator Securities and Exchange Board of India (Sebi) has been closely monitoring flows into mid- and smallcap stocks following a strong surge in the market over the last few years. On Monday, Chairperson Madhabi Puri Buch stated that the market has pockets of froth.
“Some refer to it as a bubble. It may not be good to allow that bubble to continue expanding because when it busts, it has a negative impact on investors,” she stated at an event. Further, she also stated that the regulator has discovered evidence of manipulation at both the trading and issuance levels in the small and medium-sized enterprise (SME) area.
Large-cap stocks: This was showing signs of profit booking on Wednesday. Of the 30 Sensex stocks and the 50 Nifty equities, 25 were falling sharply. PowerGrid and Coal India fell 7% each, Adani Enterprises and NTPC 6.8%, Adani Ports 6.5%, and Tata Steel 6%.
Technical outlook: The Nifty closed near its 50-day moving average of 21,997. If it falls below this, the next support level is 21,500, according to Pravesh Gour, the senior technical analyst at Swastika Investment. “The market may be turbulent during the week, with moves in both directions. He stated that 22,075 will be the first obstacle in the recovery process, followed by 22,180.
Regarding the Bank Nifty, Gour stated that if it falls below this level, a 50-DMA at about 46,500 will provide quick support, while a 200-DMA at 46,000 will provide significant support. The 9-DMA of 47,450 will be an immediate barrier, with 48,000 being the most important.
