Sensex Dips Over Staggering 1628 Points In A Single Day 

Mumbai: In a tumultuous session on Wednesday, the Indian stock market experienced a severe sell-off, witnessing the benchmark Sensex plummet by a staggering 1,628 points (-2.23%), marking its most significant single-day decline in over 18 months. The broader Nifty50 also faced its most substantial one-day percentage loss since June 2022, plummeting by 460 points (-2.09%). The Nifty Bank, which plays the major role behind this fall dips over 2060 points(-4.28%).

Analysts pointed to a confluence of factors contributing to this dramatic sell-off, including weak global market trends and disappointing earnings from HDFC Bank. The broader banking sector bore the brunt of the impact, with HDFC Bank experiencing an over 8% plunge as its December quarter results failed to meet investor expectations.

The market carnage extended beyond banking, with metal and oil stocks taking the lead in the declines. Major laggards on the Sensex included Tata Steel, Kotak Mahindra Bank, Axis Bank, and ICICI Bank. Investors voiced concerns regarding elevated valuations and potential delays in US Federal Reserve rate cuts, sparking apprehensions of a corrective phase in the market.

It’s noteworthy that this sharp decline follows a record-breaking rally in the preceding days when both the Sensex and Nifty had reached their all-time highs on Tuesday. Some analysts had anticipated a correction in response to the extraordinary surge in the market.