Sensex Tanks 765 Points, Investors Lose ₹5 Lakh Crore in a Day - 10 Big Takeaways
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The Indian stock market endured a rough session on Friday, August 8, as global trade tensions rattled investor sentiment. A sharp sell-off triggered by US President Donald Trump’s decision to impose 50% tariffs on India sent market indices tumbling and wiped out massive investor wealth in just one day.
The Big Picture
1. What Triggered the Crash?
Trump’s aggressive tariff move and his indication that trade talks will remain frozen until the dispute is resolved have amplified concerns over India’s economic prospects. Weak earnings, high valuations, and foreign fund outflows have further dampened sentiment.
"The Indian equity market exhibited downward movement, closing at a three-month low amid growing concerns over the impact of US tariffs on Indian exports. FIIs remained net sellers, intensifying the pressure on domestic indices," said Vinod Nair, Head of Research, Geojit Investments.
He added, "Global financial institutions have begun revising India’s economic outlook downward, citing the adverse effects of the ongoing tariff concern. Growth projections for 2025 and 2026 have been lowered, reflecting heightened uncertainty surrounding India’s trade and macroeconomic environment."
2. Nifty 50 Gainers
Only nine stocks managed to end in positive territory:
3. Nifty 50 Losers
The biggest drags on the index were:
4. Sector Performance
No sector escaped the sell-off:
5. Most Active Stocks by Volume (NSE)
6. Bright Spots Amid the Gloom
Eight BSE stocks defied the market mood, soaring over 15%. Notable gainers included Pioneer Investcorp, KG Denim, and Mirc Electronics.
7. Market Breadth
Of the 4,173 stocks traded on the BSE:
8. 52-Week Highs
119 stocks, including JK Cement, Global Health, Nuvoco Vistas Corporation, Sai Life Sciences, and Star Cement, touched fresh 52-week highs during the session.
9. 52-Week Lows
110 stocks, such as SpiceJet, Tejas Networks, Quess Corp, Route Mobile, and Protean eGov Technologies, hit their 52-week lows.
10. Technical Outlook for Nifty
The Nifty 50 ended below the crucial 24,400 mark, signalling further weakness ahead.
According to Rupak De, Senior Technical Analyst at LKP Securities:
"Sentiment was already tilted in favour of the bears, with the index forming a lower-top, lower-bottom pattern. The short-term trend remains weak, with potential downside towards 24,150–24,200. On the higher side, resistance is seen at 24,475–24,500."
The Big Picture
- The Sensex closed 765 points lower at 79,857.79, while the Nifty 50 slipped 233 points to end at 24,363.30 - both down nearly 1%.
- Midcap and Smallcap indices were hit harder, losing 1.56% and 1.03% respectively.
- The total market capitalisation of BSE-listed firms dropped from ₹445 lakh crore to ₹440 lakh crore, erasing ₹5 lakh crore in investor wealth in a single session.
- This marks the sixth straight week of losses for the benchmark indices.
1. What Triggered the Crash?
Trump’s aggressive tariff move and his indication that trade talks will remain frozen until the dispute is resolved have amplified concerns over India’s economic prospects. Weak earnings, high valuations, and foreign fund outflows have further dampened sentiment. "The Indian equity market exhibited downward movement, closing at a three-month low amid growing concerns over the impact of US tariffs on Indian exports. FIIs remained net sellers, intensifying the pressure on domestic indices," said Vinod Nair, Head of Research, Geojit Investments.
He added, "Global financial institutions have begun revising India’s economic outlook downward, citing the adverse effects of the ongoing tariff concern. Growth projections for 2025 and 2026 have been lowered, reflecting heightened uncertainty surrounding India’s trade and macroeconomic environment."
2. Nifty 50 Gainers
Only nine stocks managed to end in positive territory:- NTPC (+1.59%)
- Titan Company (+1.49%)
- Dr. Reddy's Laboratories (+1.18%)
3. Nifty 50 Losers
The biggest drags on the index were: - IndusInd Bank (-3.32%)
- Bharti Airtel (-3.28%)
- Adani Enterprises (-3.15%)
4. Sector Performance
No sector escaped the sell-off: - Realty, Consumer Durables, and Metal indices plunged up to 2%.
- Banking and Financial Services indices fell around 1% each.
5. Most Active Stocks by Volume (NSE)
- Vodafone Idea: 37.33 crore shares
- Bharti Airtel: 9.38 crore shares
- Jaiprakash Power Ventures: 5.8 crore shares
6. Bright Spots Amid the Gloom
Eight BSE stocks defied the market mood, soaring over 15%. Notable gainers included Pioneer Investcorp, KG Denim, and Mirc Electronics. 7. Market Breadth
Of the 4,173 stocks traded on the BSE:- 1,523 advanced
- 2,506 declined
- 144 remained unchanged
8. 52-Week Highs
119 stocks, including JK Cement, Global Health, Nuvoco Vistas Corporation, Sai Life Sciences, and Star Cement, touched fresh 52-week highs during the session. 9. 52-Week Lows
110 stocks, such as SpiceJet, Tejas Networks, Quess Corp, Route Mobile, and Protean eGov Technologies, hit their 52-week lows. 10. Technical Outlook for Nifty
The Nifty 50 ended below the crucial 24,400 mark, signalling further weakness ahead. According to Rupak De, Senior Technical Analyst at LKP Securities:
"Sentiment was already tilted in favour of the bears, with the index forming a lower-top, lower-bottom pattern. The short-term trend remains weak, with potential downside towards 24,150–24,200. On the higher side, resistance is seen at 24,475–24,500."
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