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Market Opening Triggers Stock Market Crash: Sensex and Nifty Indices Plummet Sharply
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Aaj Tak
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Market Opening Triggers Stock Market Crash: Sensex and Nifty Indices Plummet Sharply

On the fourth trading day of the week, Thursday, the stock market experienced another crash. Immediately after the market opened, both indices, Sensex and Nifty, showed a sharp decline. The BSE Sensex index, comprising 30 stocks, began its movement with a drop of 700 points, while the NSE Nifty lost over 200 points.

Amid this market turmoil, many large stocks, including Maruti, Tata Steel, Power Grid, and BEL, showed significant declines, resembling a house of cards.

On Thursday, the market faced a picture of chaos. The BSE Sensex opened at 73,343, which was lower than the previous close of 73,709. The rate of decline then accelerated, and in just five minutes, the thirty-stock index plummeted by more than 700 points, reaching the level of 73,005.

NSE Nifty followed the example of Sensex. It opened at 22,687 compared to the previous close of 22,811. After this, the pace of decline for the fifty-stock index also intensified, and it traded at 22,557.

As a result of the overall downturn, 28 out of the 30 stocks in the BSE large-cap category were trading in the red zone. Among the most affected assets were PowerGrid Share (down 2.60%), BEL Share (down 2.25%), Maruti Share (down 2%), Tata Steel Share (down 1.99%). HDFC Bank Share (down 1.80%) and Asian Paints Share (down 1.70%) also saw declines.

The previous trading day, Wednesday, proved to be extremely unsuccessful and unexpected for investors. At the start of trading, Sensex and Nifty showed rapid growth: BSE Sensex rose by more than 800 points, and NSE Nifty by approximately 200 points. However, sudden profit-taking at the upper levels led to a sharp halt in growth. Ultimately, BSE Sensex fell by 1400 points from its daily high. Despite this, at the end of trading, the thirty-stock Sensex closed down by 143 points at 73,709, and the fifty-stock Nifty Index closed with a drop of 77 points at 22,811.

Signs of an impending downturn on the market appeared even on Thursday. Asian stock markets were experiencing turmoil: the Japanese Nikkei index fell by almost 1000 points by the time of writing. The Hong Kong Hang Seng Index decreased by approximately 600 points. The Korean Kospi index also showed a drop of about 3 percent. Furthermore, Gift Nifty was trading with a decline of more than 100 points.

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BSE Sensex Index Falls by 1400 Points After Sharp Rise, Stock Market Crashes
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www.aajtak.in

BSE Sensex Index Falls by 1400 Points After Sharp Rise, Stock Market Crashes

Tuesday proved to be an extremely unexpected day for investors in the stock market. Following a strong initial rise, the stock market experienced a crash. The Bombay Stock Exchange's (BSE) Sensex index fell by approximately 1400 points from its daily high by 13:30.

The situation was also unfavorable for the National Stock Exchange's (NSE) Nifty index.

The BSE Sensex opened on Wednesday with a strong surge, exceeding the 74 thousand mark. It began trading at 74,337.93, up from Monday's close of 73,852.90. Within minutes, the index demonstrated rapid growth, reaching 74,682.19.

However, after reaching this level, the rise suddenly turned into a decline. By the time the article was written, the Sensex had dropped to 73,281, representing a fall of 1401 points from its daily high.

Similar to the BSE Sensex, the Nifty index, which comprises 50 NSE stocks, also changed its momentum. After starting trading with a strong acceleration, Nifty suddenly plummeted. On Wednesday, the index opened at 23,016, showing growth compared to the previous close of 22,888.95, and reached 23,120, following the movements of the Sensex. A subsequent decline followed, and the index traded at 22,672, which represented a drop of 448 points from the daily high.

Sharp Decline in Large Stocks

While most large-cap stocks on the BSE looked green during the initial trading, by the time of publication, stocks such as Eternal Share (3.40%), Bajaj Finance Share (3.30%), Trent Share (2.88%), Maruti Share (2.40%), Axis Bank Share (2.20%), NTPC Share (2.15%), Bajaj Finserv Share (2.10%), BEL Share (2.15%), IndiGo Share (2.05%), M&M Share (1.95%), and HDFC Bank Share (1.60%) were observed to be falling.

Fluctuations in RIL and IT Stocks

Amid the overall market downturn, many large company stocks experienced a decline. Nevertheless, Reliance Industries shares, belonging to Mukesh Ambani's company, showed growth of up to 2.30% due to the launch of the Jio Platforms IPO. However, the rate of growth slowed down along with the market crash. Furthermore, Infosys Share (3.10%), Tech Mahindra Share (2.80%), HCL Tech Share (2.20%), and TCS Share (2.09%) demonstrated growth.

The main question was what caused the change in market sentiment and the collapse of Sensex-Nifty after such a vigorous rise. The primary reason is considered to be the rise in crude oil prices. Tensions continuing in the Middle East and the reduction in crude oil reserves in the US led to the international crude oil price exceeding $110 per barrel.

The high cost of oil raises concerns for major importers like India and puts pressure on the market. Additionally, profit-taking among investors, who actively sold assets as soon as the market started rising amid uncertainty, played a significant role in the decline.

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