Indian stock markets saw a major bloodbath as it approached close on Tuesday, with Sensex down by over 1000 points, struggling to reach its all time high once again.
BSE Sensex was down over 1000 on January 23, settling at 70,419 while NSE Nifty was down by 341 points at 3 pm, standing at 21,255.
This comes after the markets remained closed on Monday, January 22, as the national celebrated the inauguration of the Ayodhya Ram Mandir and the consecration ceremony of the Ram Lalla idol inside the newly-constructed temple.
After tumbling over 1000 points as the market session nears its closing bell on Tuesday, the BSE Sensex hit its one-month low at 70,419. Notably, it was in January 2023 that Sensex hit its all time high at over 73,000.
Nifty and Sensex both saw a massive spike earlier this month, and have been struggling to keep up since. Both the benchmark indexes fell for three days straight last week, seeing a slight recovery on Friday. However, a major crash of the market was witnessed on Tuesday for five primary reasons, listed below.
5 reasons why Sensex, Nifty fell on Tuesday
HDFC shares continue to tank
HDFC Bank shares contributed hugely to the drop in NSE Nifty and Nifty bank on Tuesday, with the stock falling 3 percent. The steep decline in the HDFC Bank share price alone contributed to 1/3rd of the fall in the stock market today.
RIL shares tumble
Reliance Industries, which is India’s most valued company, saw its shares fall 2 percent today, leaving the stock market in massive turmoil. Mukesh Ambani’s Reliance became the second biggest contributor in today’s stock market crash.
FII selling
Foreign institutional investors (FII) ended up selling Indian equities worth more than ₹23,000 crore in January 2024, according to SEBI date, which is why the last two weeks have been turbulent for the stock market.
Global tensions on the rise
The Israel-Hamas was and escalating tensions in Gaza have had a major impact on the crude oil prices and exports via Red Sea this month. Market experts believe that the hampering of imports and exports is leading to increased strain on the stock market.
Technical tensions
Nifty 50 has dwindled in the 21,500-21,700 segment for some time now, but slipped below 21,500 on Tuesday. Further, analysts believed that Nifty and Nifty Bank will continue to fall due to mounting selling pressures, expected to last for the next couple of weeks.