Stock market plunges: Sensex sinks 1,064 points, Nifty drops 332 amid weak trade data
PTC Web Desk: The Indian stock market witnessed a steep sell-off on Tuesday as benchmark indices closed sharply lower, driven by weak trade data and concerns over a widening trade deficit.
The Sensex nosedived by 1,064.12 points, or 1.3%, to settle at 80,684.45, while the Nifty tumbled 332.25 points to close at 24,336.00. Among the 50 Nifty companies, only Copla and ITC recorded gains, while 48 stocks suffered losses. Top laggards included Shriram Finance, Grasim, Hero Motoco, Bharti Airtel, and JSW Steel.
The bearish trend was sparked by disappointing trade data for November, which showed a significant drop in exports due to weak global demand. The trade deficit hit a record high, dampening investor sentiment and raising concerns about the nation’s economic growth trajectory.
The pressure on the Indian Rupee, which depreciated during the session, further compounded market woes. Analysts pointed to the combination of weak exports, currency headwinds, and macroeconomic uncertainty as the primary drivers of the market's sharp decline.
VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today, said, “The market anticipates negative annual growth across industries, fueling pessimism among investors. The weakening economy, marked by a depreciating currency, is eroding purchasing power, especially for MSMEs, which play a pivotal role in GDP contribution.”
She added that medium-sized businesses are also under pressure, with profitability challenges arising from current business policies. Ambala suggested that market regulators may propose measures to safeguard retail investors, particularly in the SME listing space.
With investor confidence shaken, analysts warn of continued volatility in the short term. Key factors to monitor include global demand trends, domestic economic data, and currency movements.
- ANI
