Stock market crash today: BSE Sensex plunges over 1,100 points to dip below 74,000; Nifty50 around 22,350 as bears growl - top reasons for decline

Stock market crash today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in trade on Friday, despite a strong opening and the Nifty reaching a new all-time high. Selling pressure in index heavyweights Reliance Industries (RIL) and HDFC Bank dragged Indian headline indices on Friday.

The S&P BSE Sensex dropped by 1,126 points or 1.5% to reach the day's low of 73,627.99, and the broader Nifty 50 fell by 289 points, reaching the day's low of 22,358.65. All sectoral indices are experiencing declines in trading. At 2:32 PM, BSE Sensex was trading at 73,651.40, down 960 points or 1.29%. Nifty50 was at 22,409.40, down 239 points or 1.05%.

The market capitalisation of companies listed on the Bombay Stock Exchange also decreased by a significant amount of Rs 4.25 lakh crore.

RIL and HDFC Banks were the main contributors to the market decline. The Indian markets lost their morning gains and dropped to the day's lowest point due to the negative performance of RIL, L&T, HDFC Bank, and Bharti Airtel, among other companies. These stocks had the most significant impact on the headline indices in relation to their contribution to the respective indices.

Asian Markets were not only down in D-St, but several major Asian frontline indices were also trading in the red. Japanese Nikkei was down by 37 points or 0.10% at 38,236.07. China's Shanghai Composite was trading with a negative bias, down by 0.26% at 3,104.82. South Korea's Kospi also decreased by 0.30%.

Bajaj Finance shares rose over 6% after the Reserve Bank of India lifted restrictions on its lending products, allowing it to resume sanction and disbursal of loans in the banned segments. The stock emerged as the top gainer on the Sensex.

ET quoted V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, saying that global and domestic cues are positive for the markets, with the decline in dollar index, correction in the US 10-year bond yield, and Brent crude below $84 further strengthening the bulls.

He also noted that the strong buying by DIIs, facilitated by the sustained flow of funds, is unlikely to change anytime soon.

Wall Street equities rose overnight after Fed Chair Jerome Powell said that further interest rate increases remained unlikely. Foreign institutional investors sold Indian shares on Thursday, offloading stocks worth Rs 964 crore, while domestic institutional investors bought shares worth Rs 1,352 crore on a net basis, cushioning the foreign outflows.