Sensex Tanks 1,300 Points, Nifty Falls Below 24,600 — 10 Key Takeaways from Today’s Market Sell-Off
Indian stock markets saw a sharp decline as the Sensex plunged nearly 1,300 points and Nifty fell below 24,600. Here are 10 key highlights from today’s market crash and what triggered the sell-off.
Sensex
On Tuesday, May 13, India’s frontline indices, the Sensex and Nifty 50, experienced significant losses, following a day of strong gains driven by improved India-Pakistan relations. The Sensex dropped by 1,282 points (1.55%), closing at 81,148.22, while the Nifty 50 fell by 346 points (1.39%) to settle at 24,578.35. Despite the benchmark indices declining, the BSE Midcap and Smallcap indices outperformed, ending 0.17% and 0.99% higher, respectively.
10 Key Highlights from the Indian Stock Market Today:
1. Why Did the Market Fall?
The major stock indices ended lower due to profit booking. Only five stocks in the Sensex managed to close in the green. The primary contributors to the losses were HDFC Bank, Infosys, Reliance Industries, Bharti Airtel, and ICICI Bank.
Despite a decrease in tensions between India and Pakistan, other factors like the US-China trade deal are seen as negative for Indian markets.
"The market is undergoing profit booking after yesterday’s rally. The relief-driven surge, fueled by reduced global and domestic risks, is taking a breather today," explained Vinod Nair, Head of Research at Geojit Investments.
2. Profit Booking Post Rally
Investors are cashing in on gains after the recent surge, with large-cap stocks taking a hit while mid- and small-cap stocks continue to rise.
3. Geopolitical Uncertainty
Though the India-Pakistan situation has eased, global trade tensions, especially between the US and China, are creating an unfavourable environment for Indian stocks.
4. Sector Performance
While the broader market saw a pullback, mid and small-cap stocks are still attracting attention, with Q4 earnings showing improvements in these segments.
