Investors lose nearly 5 lakh crore as market ends in red; Nifty below 24,800

The stock market started the week with a whirlwind of activity, leaving investors in a state of confusion and concern. As trading commenced on Monday, the Sensex surged by 500 points within minutes, only to plummet soon after. This erratic behavior continued throughout the day, with the market repeatedly bouncing between gains and losses. By the close of trading, investors had collectively lost a staggering 4.8 lakh crores, highlighting the volatility that defined the day.

Despite a strong start, both the Sensex and Nifty ended the day in the red. The Sensex, the 30-share benchmark index, finished at 81,151.27, down by 73.48 points or 0.09 percent. Midcap and smallcap stocks saw significant losses, with BSE midcap falling by 1.63 percent and smallcap dropping by 1.51 percent. Large-cap stocks, especially those in sectors like banking and cement, also took a hit. This sharp selling in midcap and large cap stocks deepened investor concerns.

Among the major contributors to the decline was Kotak Mahindra Bank, whose shares saw a sharp fall amid the withdrawal of foreign institutional investors (FIIs). FIIs sold shares worth Rs 5,485.70 crore on Friday, which continued to weigh on the market sentiment on Monday. While domestic institutional investors (DIIs) attempted to stabilize the market by purchasing shares worth Rs 5,214.83 crore, it was not enough to offset the losses from foreign sales.

Several other prominent stocks also struggled throughout the day. Bajaj Finserv, IndusInd Bank, Adani Ports, UltraTech Cement, Bajaj Finance, Tata Consultancy Services, Infosys, Bharti Airtel, Hindustan Unilever, and JSW Steel were among the major losers in Monday’s trading session. Their losses contributed significantly to the overall decline of the Sensex and Nifty.

In contrast, HDFC Bank emerged as one of the few bright spots in an otherwise dismal market. The bank's stock rose by nearly three percent after reporting a six percent rise in its consolidated net profit, reaching Rs 17,825.91 crore in the September quarter. Other stocks that managed to close in the green included Asian Paints, Mahindra & Mahindra, Reliance Industries, Maruti, and Tech Mahindra.