Indian Stocks Face Decade Worst Start: Nifty, Sensex Plunge Amid Sell-Off
Overview
India's equity markets endure the worst opening to a year in a decade, with the Nifty 50 down 2.5% in eight sessions. BSE-listed firms have shed ₹20 lakh crore in market capitalization since January 2, and ₹15 lakh crore year-to-date. ITC leads losses, plummeting 15%, dragging the index lower while global peers surge.
Market Plunge
India's stock markets are experiencing a brutal sell-off, marking the worst start to a new year in over a decade. The benchmark Nifty 50 index has already fallen 2.5% within the first eight trading sessions of the year. This marks the third consecutive year that Indian equities have begun the calendar year in negative territory.
Massive Capital Erosion
Since hitting a peak on January 2, companies listed on the Bombay Stock Exchange (BSE) have collectively lost nearly ₹20 lakh crore in market capitalization. Year-to-date, the erosion stands at approximately ₹15 lakh crore, highlighting the intensity of the selling pressure.
Top Drags and Sector Weakness
Thirty out of the 50 stocks comprising the Nifty 50 index have delivered negative returns so far this year. ITC has emerged as the biggest casualty among Nifty 50 constituents, with its shares crashing 15% to multi-year lows. Other significant laggards include Reliance Industries, down 7%, and Trent and HDFC Bank, each shedding 6%. HDFC Bank endured its worst week since January 2024, wiping out over ₹1 lakh crore in market value.
Global Underperformance
The Nifty's performance contrasts sharply with global markets. In US Dollar terms, the index has posted meager returns of just 5%, significantly trailing international peers which have seen gains ranging from 20% to as high as 70% this year. This disparity raises concerns about the underlying drivers of the Indian market's weakness.
