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Published: December 21, 2023
Updated: December 21, 2023

Unforeseen Bear Onslaught Shakes BSE Sensex, Wiping Out Rs 8.91 Lakh Crore in a Single Day

Equity investors in India faced a substantial blow as the stock market witnessed an unexpected bear attack, resulting in a colossal loss of wealth. The BSE Sensex plummeted by 930.88 points or 1.30%, closing at 70,506.31 points after initially reaching a new all-time high.

Market Turmoil Unveiled:

The day began with optimism as the Sensex gained 475.88 points, reaching a record 71,913.07 points. However, a sudden and widespread selling pressure led to a sharp decline, with the BSE Sensex hitting a low of 70,302.60 points. The market capitalization of BSE-listed companies saw a staggering decrease of Rs 8,91,729.43 crore to Rs 3,50,19,998.87 crore.

Expert Analysis:

Senior market analysts suggest that the market, on a record-setting spree, had become overbought, necessitating a correction. Redemption was observed across sectors, with mid and small-cap stocks facing significant selling pressure. Notably, Tata Steel saw the most substantial decline, dropping by 4.21%. Other major companies, including NTPC, Tata Motors, HCL Technologies, and more, witnessed declines, while HDFC Bank stood as the sole gainer.

Sectoral Impact:

The broader market reflected the turmoil, with the BSE small-cap gauge falling by 3.42% and the mid-cap index declining by 3.12%. All sectoral indices closed lower, with utilities, telecommunication, power, services, metal, commodities, industrials, capital goods, and consumer discretionary sectors experiencing declines.

Market Dynamics:

The abrupt sell-off in the domestic market during the second half, despite positive global trends, puzzled investors. Analysts attribute this to profit booking, particularly in mid- and small-cap stocks, where recent sharp rallies had stretched valuations. Additionally, a spike in crude prices prompted investors to book profits.

Watch on for markets reaction ahead:

Tuesday's gains were swiftly overshadowed by Wednesday's market turmoil, emphasizing the unpredictable nature of the stock market. As investors navigate through the aftermath of this bear onslaught, attention turns to how the market will regain stability and restore confidence among stakeholders.