Indian stock markets crashed on January 6, 2025, with the BSE Sensex falling by more than 1,200 points and the Nifty 50 index sinking below the 23,700 level.
The Nifty 50 was down by 329.35 points, at 23,675.40, and the BSE Sensex was down 0.90% at 79,223.11 points.
This downturn is attributed to several factors, including global economic uncertainties and investor profit-booking. Only 1 out of 13 sectors ended the day positive, with financials slipping 0.1%. Small-cap and mid-cap stocks also dipped about 0.6% each.
Among sectors, IT stocks gained 1%, aided by strong outlook for revenue growth. But state-owned banks tumbled 2.2%, with Union Bank of India weighing, and consumer stocks retreat 1%, thumping Dabur India.
which analysts link to a mix of global economic anxiety and domestic issues. However the sentiment has been dominated by a strong U.S. dollar and high valuations. Also, the macroeconomic fundamentals of India have come under the lens due to slowing economic indicators and stubborn inflation.
Investors are now focused on the third-quarter earnings season due to start this week with Tata Consultancy Services reporting on January 9. The coming days’ major companies performance data is also needed to show more clue for the future market direction.
Overall, heavy selling gripped the Indian stock markets throughout the day on January 6, 2025, as investors reacted to global economic uncertainty and domestic factors. The new earnings season will be an eye for investors looking for signs of recovery or new drops in the market.