The BSE Sensex plunged nearly 900 points to close at 76,201 on Tuesday, as a global technology-led sell-off rippled through Indian equity markets, according to a report in Business Today. The decline wiped out about Rs 5.5 lakh crore in investor wealth, with the BSE's total market capitalisation falling to Rs 475.1 lakh crore, exchange data showed.
Market Overview
The day's session opened steady, barely changed from the previous close. However, as losses deepened in Asian markets — particularly South Korea's Kospi — the Sensex rapidly lost ground. The Kospi hit its circuit breaker and closed 10% down after a warning from South Korea's securities regulator about the index's recent rally, according to the report.
Despite the sharp sell-off, foreign portfolio investors (FPIs) were net buyers to the tune of a marginal Rs 18 crore, while domestic institutional investors (DIIs) recorded net inflows of Rs 680 crore, according to BSE data. Market players described the foreign buying as a positive sign amid the rout.
| Metric | Value |
|---|---|
| Sensex close | 76,201 points |
| Point decline | ~900 points |
| BSE market cap loss | Rs 5.5 lakh crore |
| BSE total market cap | Rs 475.1 lakh crore |
| FPI net inflow | Rs 18 crore |
| DII net inflow | Rs 680 crore |
Global Triggers
The slide in Indian equities was part of a broader global tech sell-off. Vinod Nair, head of research at Geojit Investments, attributed the weakness to negative global cues. "Profit booking after the recent rally further intensified downside pressure, resulting in broad-based weakness across key sectors. The domestic IT sector remained under pressure, reflecting the global tech rout and persistent concerns over AI-led disruptions in the Indian IT space," Nair said.
Overnight, US tech stocks closed sharply lower, with the Nasdaq continuing to fall on Tuesday, down more than 1.4% in mid-session, according to the report. The sell-off in AI-led stocks contributed to the bearish sentiment.
Sectoral Impact and Sentiment
Among BSE sectoral indices, the metal index fell the most, closing 3% lower. The IT index declined 2.2%, directly impacted by the global tech rout. The weakness was broad-based across sectors.
Nair noted that while stable crude prices and easing geopolitical tensions offer some support to domestic investors, they remain cautious. Key domestic factors being watched include the progress of the monsoon and the ongoing US-India trade discussions, he added.
Outlook
The near-term direction for Indian markets will likely depend on global cues, particularly the trajectory of US tech stocks and the stability of the Korean market. The fact that foreign funds stayed net buyers despite the rout could provide some confidence, though profit booking may continue if global weakness persists. Investors will also monitor the monsoon's impact on the economy and any developments in US-India trade talks.
Sources:
