Stock Market Shock: Sensex and Nifty Plunge at Market Open – What’s Fueling the Drop?

Key stocks show major movement as the Indian market faces early losses.

Market Update at 9:30 AM:

Despite mixed global cues, the Indian indices opened lower on January 9. At this hour, the Sensex has dipped by 0.31 per cent, trading at 77,907, while the Nifty 50 is down 0.31 per cent, standing at 23,617.

In the broader indices, the Nifty Midcap 100 is down by 0.29 per cent, trading at 56,112, and the Nifty Smallcap 100 has dipped 0.16 per cent, standing at 18,335. Volatility showed signs of tension, with the India VIX rising by 0.48 per cent to 14.55, indicating increased uncertainty.

Among sectoral indices, the top performers were Nifty Media, Nifty Auto, and Nifty MID SELECT, while the laggards included Nifty PSU Banks and Nifty Realty.

Within the Nifty 50, the Top Gainers were BAJAJ-AUTO, HINDALCO, and KOTAKBANK. On the other hand, the biggest losers were LT, TATAMOTORS, and SBIN.

Market breadth reflects mixed sentiment, with more stocks declining than advancing, with a ratio of 961:1,326.

Pre-Market Update at 8:30 AM:

On Wednesday, Wall Street closed with mixed results as markets struggled for direction. Investors assessed the impact of conflicting jobs data alongside reports suggesting President-elect Donald Trump might declare a national economic emergency to tackle inflation.

The Dow Jones Industrial Average rose 106.84 points (0.25 per cent) to settle at 42,635.20, while the S&P 500 gained 9.20 points (0.16 per cent) to end at 5,918.23. In contrast, the Nasdaq Composite slipped 10.80 points (0.06 per cent), closing at 19,478.88.

Asian equities traded lower as investors turned cautious following a subdued session on Wall Street. Concerns grew ahead of the US market holiday on Thursday and a key jobs report due later this week. The Nikkei dropped 0.8 per cent, while the Straits Times declined 0.4 per cent.

GIFT Nifty signals a subdued start for Indian indices, hinting at a flat to slightly negative opening. Nifty futures were trading at approximately 23,722, down 33 points or 0.14 per cent.

On January 8, Indian benchmark indices staged an impressive rebound in the second half, recovering most of their intraday losses. Strong buying in IT, oil & gas, and FMCG stocks drove the recovery, helping the markets end the day nearly unchanged.

The Sensex declined by 50.62 points (0.06 per cent), finishing at 78,148.49, while the Nifty slipped 18.95 points (0.08 per cent) to close at 23,688.95.

The dollar index remained stable against major currencies during early trade, staying above the 109 mark as markets weighed uncertainties surrounding Trump’s proposed tariff plans.

Oil prices continued their decline on Thursday, weighed down by a significant increase in U.S. fuel inventories last week. However, expectations of tighter supplies from OPEC and Russia limited further losses.

Brent crude slipped by 28 cents (0.4 per cent) to trade at USD 75.88 per barrel, while WTI crude fell 30 cents (0.4 per cent), settling at USD 73.02 per barrel.

Foreign Institutional Investors (FIIs) were net sellers on January 7, offloading equities worth Rs 3,362 crore. Meanwhile, Domestic Institutional Investors (DIIs) were net buyers, investing Rs 2,716 crore, continuing their trend of robust inflows.

Hindustan Copper, Manappuram Finance, RBL Bank, and L&T Finance are under F&O trading bans today.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.