Sensex crashes almost 900 points, investors lose ₹6 lakh crore in a day: What drove the stock market down?

The Indian stock market suffered strong losses on Tuesday, 23 June, as a fresh wave of selloff engulfed across segments, driving the benchmarks down by more than 1% each.

The Sensex lost 893 points, or 1.16%, to end at 76,200.68, while the Nifty 50 shed 279 points, or 1.16%, to settle at 23,824.10.

The mid and small-cap segments also witnessed selling pressure. While the Nifty Midcap 100 dropped 1.05%, the Nifty Smallcap 100 suffered a relatively smaller loss of 0.48%.

A sharp selloff dragged the overall market capitalisation of BSE-listed firms below ₹475 lakh crore, from ₹480.6 lakh crore in the previous session, making investors poorer by nearly ₹6 lakh crore in a single day.

The stock market declined amid profit-taking, triggered by concerns about a poor monsoon and weak business data.

India's services activity fell to a 17-month low, while manufacturing growth slowed to a three-month low in June.

The HSBC Flash India Manufacturing PMI Output Index fell to 57.4 in June from 58.0 in May. The Flash Services Business Activity Index fell to 57.3 in June from the revised reading of 59.8 in May.

Meanwhile, the monsoon has started on a weak note, raising concerns about stress on rural incomes and overall demand. As per Mint, over 450 districts have received deficient rainfall so far, raising concerns over farming, water supplies, and the broader economy in an El Niño year.

While geopolitical risks have eased and oil prices have declined significantly, concerns about the global growth outlook persist, keeping investors cautious.

"Market sentiment weakened as early gains proved unsustainable amid negative global cues and prevailing caution. Profit booking after the recent rally further intensified downside pressure, resulting in broad-based weakness across key sectors," Vinod Nair, Head of Research, Geojit Investments, noted.

"Most sectoral indices ended in red, with metals recording the sharpest decline due to falling global prices and demand concerns amid an uncertain global outlook. The domestic IT sector also remained under pressure, reflecting the global tech rout and persistent concerns over AI-led disruptions in the Indian IT space," Nair added.

(This is a developing story. Please check back for fresh updates.)

Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Log in to our website to save your bookmarks. It'll just take a moment.