Sensex plunges 1,200 points, Rs 7L crore wiped out

Tapse warned that while foreign investors continue to offload domestic shares at will, any further increase in US bond yields could trigger massive selling. Foreign institutional investors (FIIs) have sold equities worth Rs 48,023 crore as of January 20, 2025.

Vikram Kasat, Head (Advisory), PL Capital-Prabhudas Lilladher said investor sentiment remained weak amid lacklustre Q3 earnings and sustained selling by FIIs. Vinod Nair, Head of Research, Geojit Financial Services said that the weak recovery in the ongoing Q3 earnings, coupled with a depreciating INR, is likely to prompt further FII outflows.

“Mid- and small-cap stocks underperformed compared to the main indices. The realty sector was hit the hardest due to weak pre-result updates, while banks suffered due to rising asset quality stress. Additionally, the expectation of an interest rate hike by Bank of Japan is dampening market sentiment,” added Nair.

Among sectoral indices, Nifty Realty and Consumer Durables fell over 4% each. Zomato was the biggest loser in the Sensex pack.