Stock Market Today: Sensex Tanks 931 Points; Nifty At 21,150. Bank, Metals Slip; SmallCap Index Sheds 3.4%

Stock update: On the 30-share Sensex platform, HDFC Bank was the lone gainer, up 0.19 per cent. On the downside, Tata Steel, NTPC, Tata Motors, HCL, M&M, SBI were among the main losers

The two key equity benchmarks, Sensex and Nifty, on Wednesday closed in the red. The two indices, after hitting record highs in morning deals, turned sharply lower in the latter half of the session. The S&P BSE Sensex, which hit a record high of 71,913, settled at 70,506, down 931. On the other hand, NSE Nifty50 ended at 21,150, down 303 points, after hitting a record high of 21,593 on Wednesday.

On the 30-share Sensex platform, HDFC Bank was the lone gainer, up 0.19 per cent. On the downside, Tata Steel, NTPC, Tata Motors, HCL, M&M, SBI were among the main losers.

In the broader markets, the indices clocked their biggest one-day loss since October 2023. The BSE Midcap and Smallcap indices dropped 3.3 per cent and 3.4 per cent, respectively.

Sectorwise, Nifty Media index plunged 5.11 per cent. Nifty PSU Bank index declined 4 per cent. Nifty Metal slipped 3.8 per cent, while the Nifty Realty index fell 2.43 per cent.

In the previous session on Tuesday, the S&P BSE Sensex gained 122 points to 71,437, while, NSE Nifty50 settled at 21,453, up 34 points.

"The domestic market saw a sharp and abrupt sell-off in the second half, despite the positive trend in global peers. This is attributable to profit-booking from the recent sharp rally stretching valuations of mid and small-cap stocks. The recent uptick in crude prices prompted investors to book profits," said Vinod Nair, Head of Research at Geojit Financial Services.

In Asian markets, Seoul, Tokyo, and Hong Kong settled in the positive territory, while Shanghai ended lower. European markets were trading mostly lower. The US markets ended in the green on Tuesday.

Global oil benchmark Brent crude jumped 0.76 per cent to $79.83 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 601.52 crore on Tuesday, according to exchange data.

Meanwhile, the rupee ended flat at 83.18 (provisional) against the US dollar on Wednesday amid massive selling in equity markets as concerns over oil supplies through the Red Sea route dented investor sentiment. Forex traders said though the US dollar index below 102 level provided support, the Indian currency was weighed down by foreign fund outflow amid volatile crude oil prices.

At the interbank foreign exchange market, the local unit opened at 83.17 and traded between the peak of 83.13 and the lowest level of 83.18 against the dollar. It finally settled at its previous closing level of 83.18 (provisional) against the greenback.