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Market Mayhem: Sensex Tanks 1,000 Points, Nifty Below 24,000 – What Sparked the Rout?
Mumbai, April 25 – Indian markets took a beating today, with the Sensex plunging 1,000 points (1.2%) to 80,148 and the Nifty 50 sliding 300 points (1.2%) to 23,916, marking a sharp single-day drop in 2025. Here’s what sent investors running.
5 Key Reasons Behind the Crash
- Indo-Pak Tensions Flare
- The Pahalgam terror attack (26 killed) has escalated fears of conflict, spooking markets.
- Travel bans and canceled Kashmir tourism hit sentiment.
- Foreign Investor Pullout
- FIIs dumped ₹5,000 crore in equities this week, rattled by geopolitical risks.
- Domestic investors bought ₹2,500 crore, but it wasn’t enough to stem the tide.
- Banking Stocks Buckle
- HDFC Bank (-2.8%): Profit-taking after a Q4 earnings miss.
- Axis Bank (-2.5%): Concerns over rising NPAs in retail loans.
- Global Market Jitters
- US markets wobbled (Dow -0.8% pre-open) on tariff hike fears.
- Asian indices followed: Nikkei (-1.5%), Hang Seng (-1.7%).
- Technical Sell-Off
- Nifty breached its 50-DMA (24,100), triggering algo-driven sales.
- India VIX jumped 15%, signaling heightened volatility.
Sectoral Damage Report
| Sector | Loss (%) | Top Losers |
|---|---|---|
| Realty | -3.5% | Godrej Properties (-5%) |
| Banking | -2.9% | SBI (-3%), ICICI (-2%) |
| Auto | -2.7% | Tata Motors (-4%) |
Expert Views
- Market Veteran: “Geopolitical shocks are short-term. India’s growth story stays intact at 6.5% GDP.”
- Global Analyst: “Emerging markets like India face FII outflows when risks spike.”
What Should Investors Do?
- Short-term: Hold cash; wait for Nifty to stabilize near 23,500.
- Long-term: Nibble at defensive sectors like FMCG and pharma during dips.
Global Context
- US Markets: S&P 500 futures down 0.5% on trade policy uncertainty.
- Asian Peers: Shanghai (-1.3%), Kospi (-1.4%) reflect global caution.
The markets are reeling from the Pahalgam fallout, but history suggests India bounces back. Stay tuned for updates.
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