₹16 trillion erased: What's behind India's stock market meltdown?
What's the story
The Indian stock market has witnessed a major rout this week, with the BSE Sensex and NSE Nifty declining by nearly 2% in the last five trading sessions. The broader markets have also seen their biggest weekly fall in four months. The sell-off has led to BSE-listed companies losing nearly ₹16 lakh crore in market capitalization during the week. Among sectoral indices, Nifty Realty has been the worst performer, crashing 14% during the week amid heavy selling pressure.
Stock performance
Over 40 Nifty stocks end in red
Over 40 stocks on the Nifty have ended the week in losses, with six stocks falling between 6% and 11%. Among these, Wipro, Eternal, Jio Financial Services, Adani Ports and Cipla were the biggest losers on the benchmark index for this week. The NSE advance-decline ratio was at a dismal 1:3 indicating that declines significantly outnumbered advances.
Company impacts
Major companies witness significant stock declines
Shares of major companies have also seen a significant decline. Paytm's shares fell over 10%. Adani Green Energy fell over 14% after its Q3 results, while InterGlobe Aviation slipped 4% after reporting exceptional losses of ₹1,547 crore in the third quarter. Premier Energies fell by 8% as its Q3 results missed estimates and its order book declined marginally on a quarter-on-quarter basis.
Reasons
What's affecting Indian stock market
The Indian stock market is currently declining due to a "storm" of domestic and global pressures. Massive foreign institutional outflows, totaling over ₹36,500 crore this month, have drained liquidity as investors react to a weakening rupee and disappointing Q3 corporate earnings. Sentiment further soured by the US regulatory summons for the Adani Group, triggering a broad sell-off today. Additionally, global uncertainty regarding US trade tariffs and escalating geopolitical tensions has driven investors toward safer assets like gold and silver.