The stock market took a sharp nosedive today, with both the Sensex and Nifty falling over 1 per cent each on March 13. As many as 43 stocks in the Nifty 50 index ended in the red, with Power Grid, Coal India, and Adani Enterprises being the top losers of the day.
The Sensex plummeted 1.6 per cent to hit its intraday low of 72,515.71, while the midcap and smallcap indices also suffered significant losses. The BSE Midcap index fell nearly 5 per cent, and the BSE Smallcap index fell over 5 per cent.
Overall market capitalization of listed firms on the BSE dropped to ₹372.1 lakh crore from ₹385.6 lakh crore in the previous session, with investors losing a staggering ₹13.5 lakh crore in a single session. Over 250 stocks hit fresh 52-week lows, including Hindustan Unilever, SBI Cards and Payment Services, Page Industries, UPL, and Zee Entertainment.
The selloff was driven by several major factors, including concerns over frothy markets. Sebi chairperson Madhabi Puri Buch issued a warning on smallcaps and midcaps, urging mutual funds to protect the interests of investors in these segments.
Additionally, Sebi chief highlighted that valuations are “off the mark” and not backed by fundamentals, leading to what he described as “irrational exuberance” in the market.
The impact of domestic macroeconomic numbers also played a role in the market downturn, with India’s retail inflation for February remaining near the previous month’s level. The consumer price index-based inflation eased to a four-month low of 5.09 per cent in February.
Investors are advised to stay informed and monitor the situation closely as the market continues to navigate through these challenging times.
