The Indian equity benchmarks closed sharply lower on a volatile Thursday, with metal stocks spearheading a widespread selloff that erased early gains. Sensex crashed 678 points or 0.83% to 78,217, and Nifty fell 204 points or 0.85% to 23,776.
The carnage was most evident in the metals space, where the sector index plunged 3.8%, its steepest fall since early August. Stocks like Vedanta dropped 6%, while APL Apollo Tubes and Jindal Steel fell over 5%. ‘China’s economic slowdown and falling commodity prices are hammering metal valuations,’ noted expert commentary from Sharekhan.
Sectoral trends painted a grim picture: auto and realty indices lost over 2%, while pharma bucked the trend with marginal gains. Advance-decline ratio stood at a dismal 1:3, reflecting broad-based selling pressure.
Global factors weighed heavily, including a stronger US dollar and disappointing Chinese economic data. FIIs sold ₹2,800 crore worth of equities, extending their selling streak to five sessions. DIIs countered with ₹1,500 crore purchases but couldn’t stem the tide.
Market breadth deteriorated sharply, with 2,800 stocks declining against just 1,100 advances. Volatility index India VIX spiked 4% to 13.2, signaling heightened uncertainty. Experts predict a range-bound market next week, with support levels at 23,500 for Nifty. ‘Selective buying in oversold pockets could emerge, but caution remains key,’ per analysts.