Experience the aftermath of the dramatic BSE Sensex plunge in 2024, causing a staggering ₹8.50 Lakh Crore in losses. Explore the market dynamics, global impacts, and the need for vigilance in these turbulent financial times.
In a dramatic turn of events, the BSE Sensex witnessed a steep decline, leaving investors grappling with losses amounting to a staggering Rs 8.50 lakh crore. As the stock market took a hit, major indices, including Nifty, experienced a substantial dip, sending shockwaves throughout the financial landscape.
Sensex and Nifty Take a Nosedive
On January 23, 2024, the BSE Sensex tumbled by 1,053.1 points, marking a significant 1.47% drop and settling at 70,370.55. Simultaneously, the broader NSE index also recorded a notable fall of 326.85 points, equivalent to a 1.52% decrease, closing at 21,244.95. This downturn was largely attributed to HDFC Bank leading a decline in financials. Additionally, Zee Entertainment witnessed a substantial drop of over 32% following the collapse of its merger with Sony’s India unit.
Financial Indicators Reflect the Market Turmoil
Financial indicators echoed the market distress, with the one-year overnight index swap rate and the benchmark five-year swap rate both decreasing by 2 basis points to 6.60% and 6.17%, respectively. India’s overnight call money rate surged by 105 basis points to 6.80%, while the overnight TREPS rate stood at 6.92%, compared to the previous day’s average of 6.8500%.
Currency Woes: Rupee Weaker Against the Dollar
The Indian rupee faced headwinds, ending slightly weaker against the U.S. dollar at 83.15, a 0.1% decline from its previous close of 83.0650. The dip was attributed to dollar demand from local oil companies and foreign banks.
Oil Prices and Market Movers
Crude oil futures experienced a decline of 0.53% on January 23, reaching ₹6,232 per barrel. This drop was fueled by a decrease in demand, prompting participants to trim their positions. On the stock market front, major gainers included Cipla, Sun Pharma, Bharti Airtel, ICICI Bank, and Hero Motocorp. Conversely, Coal India, IndusInd, ONGC, SBI Life, and Adani Ports found themselves among the major losers.
Market Dynamics at a Glance
Live updates from the stock market on January 23 revealed that advancing stocks on BSE outnumbered declining ones, with 908 stocks gaining against 2,992 decliners; 145 stocks remained unchanged. The number of stocks hitting a 52-week high was 465, while those hitting a 52-week low stood at 33.
Corporate Earnings and Market Impact
Gandhar Oil Refinery (India) reported a standalone net profit of ₹43.61 crore for the quarter ended December 2023, compared to ₹38.55 crore in December 2022. However, the stock price on the NSE witnessed a decline of 2.33%, trading at ₹255.60.
Market Reaction to EaseMyTrip.com’s Offerings
In an interesting turn, EaseMyTrip.com introduced holiday packages to Ayodhya and Varanasi, along with direct buses to Ayodhya. Despite this, the stock experienced a minor dip, trading at ₹46.30 on the NSE, down by 0.11%.
Global Impact and Market Comparisons
The global market also witnessed fluctuations, with Asian markets, particularly Hong Kong and Shanghai, experiencing gains following reports of China’s plan to inject about 2 trillion yuan ($278 billion) to stabilize its markets. In contrast, Japanese and Chinese markets showed varying responses, highlighting the interconnected yet diverse nature of global financial landscapes.
Conclusion
In the aftermath of the stock market plunge, the repercussions were felt not only by Indian investors but also reverberated globally. The volatile nature of financial markets underscores the need for vigilance and adaptability in the face of rapidly changing economic conditions.