Sensex Plummets Over 700 Points Amid Global Market Turmoil
The Indian stock market faced significant declines, with the Sensex dropping over 700 points due to global pressures and geopolitical tensions.
BSE Sensex fell by 797.02 points, closing at 72,452.37.
Crude oil prices surged above $114, impacting investor sentiment.
Foreign institutional investors sold over Rs 3,458 crore in Indian shares.
On Friday, the Indian stock market experienced a sharp downturn, marking the fourth consecutive session of losses. The BSE Sensex plummeted by over 700 points, closing at 72,452.37, while the Nifty 50 index fell below the critical threshold of 22,400, reflecting widespread selling across various sectors.
This decline can be attributed to a confluence of factors, including rising crude oil prices and escalating geopolitical tensions in West Asia. Brent crude futures rose by 1.2% to $114.47 a barrel, driven by concerns over energy supply disruptions following recent Houthi attacks in Saudi Arabia. The ongoing conflict in the region continues to weigh heavily on investor confidence, with no signs of a resolution in sight.
In addition to local factors, the Indian market is also reacting to a broader selloff in global markets. South Korean markets dropped over 3%, and the US stock market saw significant declines, particularly in technology stocks, which were affected by renewed fears regarding AI investments. The Philadelphia Semiconductor Index experienced its largest drop since June, falling by 6.7%.
Foreign institutional investors (FIIs) have also been active sellers in the Indian market, offloading shares worth Rs 3,458.70 crore on Thursday alone. This brings the total FII selling in October to over Rs 52,000 crore, further contributing to the bearish sentiment in the market. Technical analysts note that the Nifty 50 has breached key support levels, indicating potential further declines if it falls below the 22,300 mark.
Looking ahead, market experts suggest that the next support levels for the Nifty 50 are between 22,300 and 22,320, while resistance is seen at 22,610 to 22,630. Investors are advised to monitor these levels closely as the market navigates through these turbulent conditions, with potential implications for both domestic and international investors.
