Sharp Selloff Hits Indian Stock Market, Investors Lose ₹20 Lakh Crore

4 Jun 2024 , 09:53 AM

On Tuesday, June 4, a sharp selloff in the Indian stock market resulted in a significant loss for investors, with their wealth reducing by approximately ₹20 lakh crore within the first 20 minutes of trading. The overall market capitalization of companies listed on the BSE plummeted to nearly ₹406 lakh crore around 9:35 am, down from nearly ₹426 lakh crore in the previous close.

Market Opening

The Indian benchmark indices opened in the red, with the Nifty 50 starting the session at 23,179.50 and the Sensex at 76,285.78.

Sectoral Performance

All sectoral indices are trading in the red, with notable declines in PSU Bank, Power, and Oil & Gas sectors, each down by 5%. The top losers on the Nifty include Adani Ports, Adani Enterprises, L&T, ONGC, and Coal India. Conversely, the gainers are Sun Pharma, Nestle, Cipla, Britannia, and Divis Labs.

Key Highlights from Trading

• Nifty Bank: The Nifty Bank index plunged over 3%, with all its constituents falling.
• Volatility Index: The India VIX surged over 22%, indicating increased market volatility.
• Adani Stocks: Adani group stocks tumbled, with some falling up to 11%.

Election Impact

The domestic benchmark indices saw a gap-down opening as voting began for the Lok Sabha elections. The market reacted to signals of a better-than-expected performance for the INDIA block, causing significant volatility and a broad selloff across sectors.