Sensex Drops 4000 Points This Week, Nifty Falls Below 23,600
FII selling and pressure on large-cap stocks lead to a sharp fall in Indian indices, with Sensex and Nifty hitting new lows…..
Mumbai : Indian stock markets faced a severe downturn this week, with both benchmark indices — Sensex and Nifty — extending their losses for the fourth consecutive session. The BSE Sensex plunged by 4,092 points (4.98%) this week, hitting a low of 77,875. Meanwhile, the NSE Nifty dropped by 1,181 points (4.77%) to reach a week’s low of 23,537.
On Friday, the 30-share Sensex tumbled by 1,176.46 points (1.49%) to close at 78,041.59, while the Nifty50 ended down by 364.20 points (1.52%) at 23,587.50.
Reasons Behind the Market Decline
Several factors are contributing to the market’s sharp fall:
A key factor driving the market’s decline is the reversal of Foreign Institutional Investor (FII) buying, which had boosted the markets earlier this month. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the strong FII buying seen in early December is now being reversed, with significant FII selling pressure on large-cap stocks, especially in the financial sector. This has contributed to the downward trend in the market.
Large-cap stocks, particularly in the banking and financial sectors, are under significant pressure due to FII withdrawals. As these stocks represent a significant portion of the market’s overall value, their decline has a cascading effect on the indices.
In addition to domestic factors, global market uncertainty, inflation concerns, and potential economic slowdowns have also contributed to investor apprehension, leading to a flight to safety and a broad-based sell-off in Indian equities.
The market’s ongoing decline has raised concerns among investors, with some analysts predicting further volatility in the coming weeks. However, others remain cautiously optimistic, citing the potential for recovery once the global and domestic conditions stabilize.