Indian stock markets witnessed a sharp decline on Monday, January 27, 2025, as investors sold aggressively across sectors. The BSE Sensex plunged 842.5 points to an intraday low of 75,348. The Nifty50 index fell 265.4 points to a low of 22,826.8 on the National Stock Exchange (NSE).
Large-cap stocks had a brutal sell-off, with stocks of Power Grid, Tata Motors, Zomato, IndusInd Bank, HCL Tech, Tech Mahindra, TCS, Bharti Airtel, Infosys, Reliance Industries, L&T, Bajaj twins, and HDFC Bank plunging between 1% and 3.6%.
The broader market was worse hit. The Nifty MidCap index dropped 2.7% intraday, and the Nifty SmallCap index dropped 4%. Some of the small-cap stocks like CreditAccess Grameen, Netweb Technologies India, Newgen Software Technologies, Alldigi Tech, Dhani Services, Tejas Networks, Solara Active Pharma Sciences, and K P Energy were trading between 10% and 18% lower intraday.
Market breadth was sharply negative, with more than 3,300 stocks falling on the BSE as against 490 advancing stocks. At 10:55 AM, the market capitalization of all BSE-listed companies had slipped to Rs 411.3 trillion.
The analysts attribute the sharp decline in market back to several factors. They include sustained selling by foreign investors, a weakening rupee, weak December quarter results, and anxiety over the forthcoming Union Budget, and then continuing trade tensions spurred by Trump’s tariff war.