Mumbai’s benchmark indices ended the trading session deep in negative territory on Thursday, dragged down by a brutal selloff in metal stocks. The Sensex plummeted 650 points to settle at 78,245, while the Nifty 50 shed 195 points to close at 23,785.
Metal shares bore the brunt of the market’s woes, with heavyweights like Tata Steel, JSW Steel, and Hindalco Industries posting losses exceeding 4-5%. The Nifty Metal index tumbled over 3.5%, marking its worst single-day drop in weeks. Investors fled the sector amid concerns over slowing global demand, particularly from China, and rising input costs.
Broader markets mirrored the downturn, with midcap and smallcap indices declining 1-1.5%. Banking and IT stocks offered limited cushion, but even they couldn’t prevent the overall slide. ‘Weak global cues and profit booking in overvalued sectors triggered today’s correction,’ said market analyst Ravi Patel.
Foreign institutional investors (FIIs) turned net sellers, offloading shares worth ₹2,450 crore, while domestic funds provided some support with modest buying. The rupee weakened against the dollar, adding pressure on export-oriented sectors.
Looking ahead, analysts warn of continued volatility as US Fed rate decisions and upcoming earnings season loom large. ‘Investors should brace for more swings; focus on quality stocks with strong fundamentals,’ advised Patel. The market’s resilience will be tested in the coming sessions amid these headwinds.