In a dramatic turn of events, the Indian stock market witnessed a significant downturn today (March 13), with the Sensex plummeting over 900 points and slipping below the crucial 73,000-level. Meanwhile, the Nifty also experienced a sharp decline, dropping over 1%.
The smallcap index bore the brunt of the sell-off, registering its worst single-day fall since December 2022, plummeting by 5%. Midcaps weren’t spared either, suffering a 3% loss, while microcaps and SME stock indices saw a substantial decline of around 5% each.
This unexpected crash comes in contrast to the upbeat global trade setup, where the S&P500 had recently hit a record high. Despite foreign institutional investors (FIIs) pouring $3 billion into Indian stocks this month, the domestic market took a nosedive, wiping out a staggering ₹12 lakh crore from the market capitalisation of all BSE-listed stocks, which currently stands at ₹374 lakh crore.
Commenting on the turmoil, NSE MD and CEO Ashishkumar Chauhan cautioned small investors against venturing into riskier segments of the market, especially those lacking the capacity to manage high-risk levels. He emphasized the need for leverage to be utilized by investors capable of bearing the associated risks, suggesting higher entry barriers for risky products.
As the market reels from the sharp decline, investors are left grappling with uncertainty, with many viewing the recent sell-off as a pause in the broader market’s stellar rally. The Sensex’s descent below 73,000 and Nifty’s slip below 22,000 underscore the magnitude of the downturn, signaling a turbulent period ahead for investors.
