Indian Stock Market Suffers ₹8 Lakh Crore Wipeout Amid Continued Correction
Indian stock market lost ₹8 lakh crore in three days as Sensex and Nifty hit one-month lows amid FPI selling, rupee fall and global uncertainty.
Sensex and Nifty slump as markets erase nearly ₹8 lakh crore in three-day correction.
The domestic stock market continued its downward trend on Wednesday, with key indices closing sharply lower for the third consecutive session. Persistent selling pressure dragged the Sensex down by 275.01 points to 84,391.27, while the Nifty slipped 81.65 points to settle at 25,758. This is the lowest closing level for both indices since November 11.
Over the last three sessions, nearly ₹8 lakh crore in market capitalisation has been eroded from BSE-listed companies. Market analysts attribute the ongoing correction to relentless FPI selling, a fall in the rupee against the US dollar, and uncertainty over the India–US trade agreement. Weak global cues also weighed on investor sentiment.
Experts believe the next market direction will be shaped by the US Federal Reserve’s interest rate decision, expected Wednesday night, and an official announcement regarding the India–US trade deal in the coming days. According to Vinod Nair, Head of Research at Geojit Financial Services, these two developments will be critical for near-term market movement.
Nifty May Hit 29,120 Next Year: Kotak Securities
Though the market is currently going through a rough patch, Kotak Securities is still positive about the medium-term outlook. It predicts Nifty will hit 29,120 points by the end of 2024, with the backing of 17% earnings growth of companies.
According to the managing director and chief executive officer of Kotak Securities, Shripal Shah, the fears related to stock market bubble creation in India are unfounded. Additionally, he mentioned that foreign portfolio investors might come back as purchasers in the forthcoming year, thus amplifying the already existing market momentum.
