The stock market took a sharp nosedive today, with both the Sensex and Nifty falling over 1 per cent each on March 13. This led to a significant loss for investors, with as many as 43 stocks ending in the red in the Nifty 50 index. The top losers of the day were Power Grid, Coal India, and Adani Enterprises, with their shares plummeting by 7.07 per cent, 7 per cent, and 6.81 per cent respectively.
The Sensex also saw a significant drop of 1.6 per cent, hitting its intraday low of 72,515.71. The mid and smallcap indices were not spared either, with the BSE Midcap index falling nearly 5 per cent and the BSE Smallcap index falling over 5 per cent.
Overall, the market capitalization of listed firms on the BSE dropped to ₹372.1 lakh crore from ₹385.6 lakh crore in the previous session, resulting in investors losing a staggering ₹13.5 lakh crore in a single session. Over 250 stocks hit fresh 52-week lows in intraday trade, including Hindustan Unilever, SBI Cards and Payment Services, Page Industries, UPL, and Zee Entertainment.
The selloff was attributed to several major reasons, including concerns over frothy markets. Sebi chairperson Madhabi Puri Buch issued a warning on smallcaps and midcaps, urging mutual funds to protect the interests of investors in these segments. She highlighted the presence of froth in the market, cautioning against allowing it to build up further.
Additionally, Sebi chief raised concerns about valuations being “off the mark” and not backed by fundamentals, leading to what he described as “irrational exuberance.” The impact of domestic macro numbers, such as India’s retail inflation for February, which remained near the previous month’s level, also played a role in the market downturn.
Investors are advised to stay informed and monitor the situation closely as the market continues to navigate through these challenging times.
