Stock Market Crash: Big fall in Indian stock market, Sensex and Nifty see big decline throughout the week

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The Indian stock market closed with a significant decline on Friday. The Sensex fell by 769.67 points to close at 81,537.70, while the Nifty dropped by 241.25 points to settle at 25,048.65. Most of the shares in the Sensex declined, with major companies like Adani Ports, Eternal, InterGlobe Aviation, Axis Bank, and Power Grid recording the highest declines in the Nifty.

There was a huge selling pressure in the market today. In Nifty, shares like Adani Enterprises, Adani Ports, Eternal, InterGlobe Aviation, and Cipla saw a significant decline. On the other hand, some companies like Dr. Reddy's Labs, Tech Mahindra, ONGC, Hindalco, and HUL closed with gains. At the sectoral level, there was a 2 to 3 percent decline in capital goods, power, realty, public sector banks, and media sectors. The BSE Midcap index fell by 1.5 percent, while the Smallcap index declined by 2 percent.

The continuous geopolitical uncertainty is the main reason behind this decline. Although there are signs of reduced tensions between America and Europe over Greenland, ambiguity remains regarding the alleged agreement between America and NATO. The President of the United States claimed on Thursday that, according to the agreement with NATO, America has gained permanent and full access to Greenland. However, due to the lack of official confirmation of this claim, traders have adopted a cautious stance, and investors' concerns have increased.

The weakness of the Indian currency is another major reason. On Friday, during intraday trading, the rupee fell to a record low of 91.99 against the US dollar, which severely dampened market sentiment. After falling by nearly 5 percent last year, the rupee has weakened by more than 2 percent so far this year. This has further alarmed investors.

Additionally, continuous selling by foreign institutional investors (FIIs) is putting pressure on the market. So far in January, FIIs have sold shares worth more than 36,500 crores, and this aggressive selling has completely halted the market's bullish trend. As a result, investor sentiment has weakened, and a wave of recession has surged. Market strategists are now expected to strive for stability in the coming days, experts opine.