After Modi's speech, Sensex down over 1,000 points today
What's the story
The Indian stock market witnessed a major crash today, with the Sensex plummeting by 1.35% (1,044 points) to 76,275. Meanwhile, Nifty fell by 1.26% (305 points) to 23,872.90. The fall in the market was mainly due to Prime Minister Narendra Modi's call for saving energy and declining prospects for an Iran-US peace deal. The sell-off has erased nearly ₹6 lakh crore from the total market capitalization of all BSE-listed companies.
Market impact
Nifty midcap and smallcap indices fall around 1%
The total market capitalization of all BSE-listed companies fell to ₹467 lakh crore after the sell-off. All Sensex constituents were in the red, with Titan shares leading the losses by falling over 5%. Other major companies such as IndiGo, SBI, M&M, Maruti Suzuki and Bharti Airtel also witnessed a decline of 1.73-1.81%. The bearish sentiment was broad-based, with Nifty Midcap 100 and Nifty Smallcap 100 indices declining around 1% each.
Strategic response
Modi's energy conservation appeal impacts market
Prime Minister Modi'sappeal to conserve energy amid rising energy prices contributed to the market downturn. He urged citizens and businesses to conserve fuel and revive work-from-home practices. The Indian rupee also fell 0.4% against the US dollar, opening at 94.88 as oil prices surged.
Investor behavior
Foreign investors continue selling spree
Notably, foreign investors continued to sell Indian equities for the fourth consecutive session on Friday, selling shares worth ₹4,111 crore. This persistent selling by foreign investors is dampening sentiment in the market. Meanwhile, US Treasury yields inched higher amid the latest geopolitical developments with benchmark US 10-year notes rising to 4.39%, while 30-year bond yield rose to 4.967%.