The stock market faced a sharp drop today, even though it started higher in the morning. The main reason for the fall was the rising tensions between India and Pakistan.
Both Sensex and Nifty dropped over 1%, reflecting concerns about the uncertain political situation. As of 11:41 am, the S&P BSE Sensex fell by 1,026.28 points, reaching 78,775.15, and the NSE Nifty50 lost 330.40 points, standing at 23,916.30.
Although the markets had been doing well recently, with the Nifty rising from 22,000 to nearly 24,400, there is often a tendency for investors to sell off stocks and book profits after such gains. This, combined with the geopolitical tensions, caused investors to stay cautious and sell off some of their investments.
Despite the overall decline, there were a few stocks that performed well. TCS rose by 0.70%, Infosys gained 0.67%, and IndusInd Bank added 0.31%. On the other hand, Axis Bank saw the biggest loss, dropping 4.28%. Other major losers included Adani Ports, Bajaj Finance, Bajaj Finserv, and Power Grid.
The uncertainty around India’s response to the recent terror attack also added to the market’s nervousness. As a result, the markets saw a broad sell-off, affecting almost every sector. Midcap and Smallcap stocks were hit the hardest, with the Nifty Midcap100 falling 2.85% and the Nifty Smallcap100 losing 3.30%.
Investor anxiety was reflected by the India VIX, which jumped 6.46%, indicating increased fear in the market.
No sector was left unaffected. The Nifty Media index dropped 3.54%, while other sectors like PSU Banks, Realty, Healthcare, Pharma, Metal, and Consumer Durables saw significant losses. Even the IT sector was in the red, losing 0.45%.
Experts suggest that, due to the uncertainty in both local and global markets, it may be a good idea to hold cash for now unless you’re a long-term investor. Investors are advised to consider buying stocks when prices dip.
