Mumbai: The Indian stock market faced a severe bloodbath in early trade on Friday, driven by surging inflation data and heavy selling in banking and financial stocks. Reflecting the panicked market sentiment, the BSE Sensex plummeted over 600 points, while the NSE Nifty sank by 225 points within the initial trading session. This sudden, steep decline wiped out an astounding Rs 2.83 lakh crore of investor wealth in just the first seven minutes of trading.
The primary trigger for the market crash was the latest domestic inflation data crossing the 6 percent threshold for the first time in nearly two years, heavily denting investor confidence. Furthermore, global market instability also cast a shadow, with crude oil prices sharply bouncing back above the $95 per barrel mark. Market analysts pointed out that the ongoing geopolitical uncertainty in the Middle East and the absence of a concrete peace deal have kept global crude oil prices extremely volatile, causing ripples across international financial markets.
In terms of indices, the BSE Sensex opened at 81,833.78 but swiftly plunged by 610.55 points to touch a low of 81,300.46 in the opening session. However, the market witnessed a minor recovery, and by 9:44 AM, the Sensex was trading around 81,670.89, down by approximately 240 points from its previous close.
Similarly, the broader NSE Nifty opened at 25,209.85 and quickly slipped by 225 points to a low of 25,077.55, before marginally recovering to trade around 25,200.60.
The bloodbath was led by major banking and financial stocks. Shares of Mahindra & Mahindra and HDFC Bank emerged as the top losers on the BSE. Other heavyweight stocks, including SBI, Axis Bank, Bajaj Finance, Bajaj Finserv, Titan, and Maruti, also witnessed significant downward pressure.
Conversely, IT and pharmaceutical stocks provided a sliver of hope amid the broader market carnage. Tech giants like TCS, HCL Tech, Tech Mahindra, and Infosys were trading in the green. Additionally, shares of Sun Pharma, Dr Reddy’s, Apollo Hospitals, and Bharti Airtel defied the negative trend, showing notable gains during the morning session.