Stock Market News Today: Global cues have a direct impact on Indian markets. Currently, investors are cautious about geopolitical tensions, global economic growth, and the direction of interest rates.

Heavy fall in the stock market

Stock Market News: After three days of gains, the stock market suddenly took a break on the fourth trading day of the week. Despite the initial gains, banking, auto, metal, and FMCG stocks saw heavy selling, resulting in a massive loss of approximately ₹7.55 lakh crore for investors. The Sensex and Nifty fell sharply intraday, falling by 1,400 points. However, before the market closed, the Sensex fell by 1,236 points to 82,498.

The Nifty 50 also slipped nearly 400 points (about 1%) to 25,400. However, it later closed at 25,454. The total market cap on the BSE fell to around ₹464 lakh crore.

Which stocks saw the biggest decline?

Heavyweight stocks saw heavy selling pressure. Reliance Industries, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Larsen & Toubro, Hindustan Unilever, and ITC Limited also remained weak. While the IT sector provided some support, with shares of Infosys and Tata Consultancy Services seeing modest gains, it wasn't enough to stabilize the market.

Indian markets are directly impacted by global cues. Currently, investors are cautious about geopolitical tensions, global economic growth, and the direction of interest rates. During times of uncertainty, investors shift funds from riskier assets (such as equities) to safer investment options like gold and government bonds.

This increases pressure on emerging markets, including India. Overall, global volatility and selling in heavyweight stocks put the brakes on the market's rally. Asian markets were firm. South Korea's KOSPI closed with a gain of nearly three percent, while Japan's Nikkei 225 rose nearly one percent.

What caused the decline?

Markets in Hong Kong and China were closed for the Lunar New Year holiday. US stock markets also closed with gains on Wednesday, supporting global investment sentiment. Meanwhile, international benchmark Brent crude rose 0.37 percent to $70.61 per barrel. Institutional investor activity in the domestic market remained positive.

According to stock market data, foreign institutional investors (FIIs) were bullish on Wednesday, purchasing shares worth ₹1,154.34 crore. Domestic institutional investors (DIIs) also made purchases worth ₹440.34 crore. Global cues and institutional buying contributed to a positive market sentiment.