Intense selling in metal stocks triggered a sharp correction in Indian share markets today, with both Sensex and Nifty closing over 0.8% down. The 30-share Sensex surrendered 632 points to end at 78,263, while Nifty 50 slipped 187 points below 23,800.
The Nifty Metal index cratered 3.6%, led by declines in Hindustan Copper (down 7%), Tata Steel (4.8% loss), and SAIL (4.2%). Rising fears of a global manufacturing slowdown, coupled with softening steel prices, fueled the exodus from the sector.
Other heavyweights faltered too: PSU banks dropped 1.8%, FMCG shed 1.2%, and energy stocks lost 1%. Only IT managed a slight uptick of 0.3%. Trading volumes surged 20% above average, indicating panic unwinding.
Overseas, Asian markets traded mixed, but Wall Street’s prior cautionary close set a somber tone. India’s rupee depreciated 25 paise to 84.12/USD, exacerbating importer woes. FII outflows hit ₹2,600 crore, the highest in a month.
Technical charts show Nifty breaching key support at 24,000, with next stop potentially at 23,600. ‘This dip presents buying opportunities in metals if global cues stabilize,’ opined strategist Meera Joshi. Earnings from IT majors next week could dictate the recovery trajectory, keeping traders on edge.