Indian Stock Market Suffers Heavy Losses, Sensex Drops Over 150 Points
Indian Stock Market Snaps Two-Day Winning Run Amid Global Cues and Rupee's Record Low
The Indian stock market experienced a broad-based selloff on Friday, 15 May, as the frontline indices, the Sensex and the Nifty 50, snapped their two-day winning run. The Sensex fell 161 points, or 0.21%, to end at 75,237.99, while the Nifty 50 settled at 23,643.50, down 46 points, or 0.19%. The decline in the Sensex and the Nifty 50 was largely attributed to profit booking amid weak global cues, a sharp jump in crude oil prices, and the rupee's fall to a fresh record low against the US dollar.
The market capitalisation of the firms listed on the BSE dropped to ₹460.5 lakh crore from nearly ₹463 lakh crore in the previous session, resulting in investors losing more than ₹2 lakh crore in a single session. The selloff was not limited to the frontline indices, as even the mid and small-cap segments ended in the negative. The BSE 150 Midcap index fell 0.48%, while the BSE 250 Smallcap index declined 0.37%.
The Indian stock market ended lower for the week, with the Sensex dropping 2.7% and the Nifty 50 dropping 2.2%, snapping their two-week winning run. The decline in the stock market was largely attributed to the rupee's fall below the 96 per dollar mark for the first time, amid a 3% jump in crude oil prices. Brent Crude traded above $108 per barrel, while the Indian rupee ended 30 paise lower at a record low of 95.94 per US dollar.
Market sentiment remained weak as US President Donald Trump's two-day visit to Beijing concluded without any major breakthroughs on trade or firm support from China to end the West Asia conflict. The focus has shifted to potential fiscal and monetary measures to defend the rupee and stabilise the balance of payment (BoP).
Comparison of Sensex and Nifty 50 Performance
| Index | Previous Session | Current Session | Change |
|---|---|---|---|
| Sensex | 75,399.10 | 75,237.99 | -161 points (0.21%) |
| Nifty 50 | 23,689.50 | 23,643.50 | -46 points (0.19%) |
Investors have turned cautious post the recent relief rally, with rising bond yields, a weaker rupee, and fresh fuel price hikes reviving inflation concerns. Favourable valuations and a solid Q4 earnings print are cushioning the downside. The near-term direction is likely to be driven by geopolitical developments.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should be cautious and consider diversifying their portfolios to minimize losses.
More in Market
SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
