Sensex Ends 3-Day Winning Streak, Plummets by 540 Points

On Thursday, the Indian equity benchmark Sensex plunged almost 540 points, driven by heavy selling in index heavyweights such as Reliance Industries, Bajaj Finserv, and ICICI Bank. This decline comes amid a sluggish trend in global markets, and the weak performance of the rupee against major currencies overseas added to the pessimism among traders. The Sensex, which had been on a three-day gaining streak, opened strong but was unable to sustain the momentum as it came under severe selling pressure and eventually closed 541.81 points, or 0.90%, lower at 59,806.28. Similarly, the NSE Nifty also fell by 164.80 points, or 0.93%, to 17,589.60.

Several major companies contributed to the decline in the Sensex. M&M was the top loser, with a drop of 3.31%, followed by Reliance Industries, Bajaj Finserv, ICICI Bank, Maruti, Tata Motors, and Tech Mahindra. On the other hand, Tata Steel, L&T, Axis Bank, Bharti Airtel, and HDFC Bank were among the gainers.

In terms of sectors, BSE Auto and Consumer Durable witnessed intense selling during the session. In the broader markets, the BSE midcap fell by 0.55% while the small-cap slipped by 0.20%.

Global markets also experienced a negative trend, with bourses in Hong Kong, Shanghai, and Seoul settling in the red while Tokyo closed with gains. Equities in Europe were also trading with significant losses in mid-session deals. In the overnight session, equities on Wall Street closed mixed.

The weak performance of the Indian rupee was another factor that dampened investor sentiment. It fell by 7 paise to close at 82.02 (provisional) against the US dollar on Thursday. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday as they purchased shares worth Rs 3,671.56 crore, according to exchange data.

Finally, international oil benchmark Brent crude slipped 0.01% to USD 82.65 per barrel, which may have further weighed on investor sentiment. Overall, the decline in the Sensex on Thursday has come as a disappointment to investors who had hoped for continued growth after the recent gains.