The Indian equity market witnessed a sharp and broad-based selloff during morning trading on Tuesday, December 16, mirroring negative trends in global markets. The benchmark indices opened deep in the red and extended their losses as the session progressed.
Major Indices Plunge to Intraday Lows
The selling pressure was severe on the frontline indices. The Sensex plummeted by more than 400 points, hitting an intraday low of 84,795. Similarly, the Nifty 50 index broke below the crucial psychological mark of 26,000, touching a low of 25,901 during the session. This decline indicated widespread pessimism among investors.
Midcap and Smallcap Segments Under Pressure
The bearish sentiment was not confined to large-cap stocks. The broader market also faced significant headwinds. Both the BSE Midcap and the BSE Smallcap indices fell by over half a percent each. This uniform decline across market capitalizations highlighted the risk-off mood prevailing among market participants.
Investor Wealth Erodes by ₹2 Lakh Crore
The market carnage led to a massive erosion of investor wealth in a very short span. Approximately ₹2 lakh crore was wiped off from the total market capitalisation of companies listed on the Bombay Stock Exchange (BSE) within the first half-hour of trade. The cumulative market cap of these firms dropped to around ₹469 lakh crore by 9:45 am, down from ₹471 lakh crore recorded in the previous session.
The primary trigger for the domestic selloff was attributed to weak global cues, which prompted investors to book profits and reduce exposure to risky assets. Market analysts advised caution, noting that such volatility requires a disciplined investment approach. As the situation develops, investors are recommended to stay updated with the latest news and consult certified financial experts before making any portfolio decisions.
