BSE SENSEX Loses Almost 3,900 Points in 5 Days

The BSE SENSEX index lost 2.63% today which is a loss of 1700 points in a single day. The BSE SENSEX is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. As of writing, the SENSEX index is at 57,491.51.

With this loss, the benchmark index for India's capital market is at the lowest point of the last 9 months. Companies like Zomato, Paytm, and Nykaa witnessed sharp losses during today’s trading session. Zomato was down nearly 19 percent, while Paytm was down nearly 8 percent and Nykaa was down 10 percent.

The withdrawal of investment position by Foreign Portfolio Investors (FPIs) has resulted in a huge supply. Data illustrate that FIIs have sold out equities worth ₹11,000 crores in the last three trade sessions last week.

Another reason that has supported the bearish sentiment of the market is the comparatively poor quarterly report of the listed companies. In addition to that, investors are speculative regarding the consequences of the UNION budget 2022-23. Thus, investors' sentiment may have been bearish ahead of the budget declaration.

The fallen value of the Indian rupee against the US dollar is also believed to be responsible. Furthermore, soaring global inflation may have also triggered the fall, as inflation slows development across nations. 

Among other things, traders also remain cautious ahead of the monthly expiry of the January derivatives contract which will be known only on the 26th of January by the Federal Open Market Committee( FMOC) meeting.

-Sources