Indian Stock Market Faces Steep Decline

Market Overview

• Sensex and Nifty Performance
  • Sensex dropped 824 points.
  • Nifty 50 fell by 263 points.

Market Participants’ Sentiment and FPIs

• FPIs
  • Foreign Portfolio Investors (FPIs) continued their selling spree, contributing to the market downturn, driven by concerns about an impending slowdown in earnings growth.
• Market Capitalisation
  • The overall market capitalization of companies listed on the Bombay Stock Exchange (BSE) declined to ₹410 trillion, losing ₹9.2 trillion.

Global Developments Influencing the Market

• Global Volatility
  • Global market concerns were heightened by uncertainty surrounding U.S. policies.
  • The emergence of “DeepSeek,” a Chinese alternative to ChatGPT, further deteriorated the mood of investors, particularly affecting technology stocks in the U.S.
• Tech Stocks
  • Tech stocks, including Nvidia and Oracle, faced significant losses early in the U.S. trading session, due to fears that DeepSeek’s low-cost AI model could threaten Western tech companies’ dominance.