Sensex nosedives over 1,100 points, Nifty breaches 23,040; investors lose Rs 1.48 lakh cr

At 1 PM on February 11, the Sensex crashed 1,060 points, or 1.37 per cent, to 76,250, while the Nifty slipped 345 points, or 1.48 per cent, to 23,036.

This marks the fifth straight session of losses for the indices, driven by weak domestic earnings, global uncertainties, and fresh trade war fears after Donald Trump’s tariff hike on steel and aluminium imports.

The broader markets faced severe selling pressure, with the BSE Midcap index down over 2 per cent and the BSE Smallcap index tumbling nearly 3 per cent. All 13 major sectoral indices were in the red, with financials, auto, and realty stocks leading the fall.

Key triggers for the market plunge

• Trump’s steel tariffs: The former US president reinstated and expanded 25 per cent tariffs on steel and aluminium imports, impacting global trade sentiment.
• Foreign investor exit: FIIs have pulled out Rs 12,643 crore from Indian equities this month, exacerbating the downturn.
• Rupee weakness: The rupee depreciated further, hitting 87 against the US dollar, as aggressive foreign bank dollar-buying and import hedging weighed on sentiment.
• Weak Q3 earnings: Major firms like Eicher Motors missed profit and margin estimates, sparking sell-offs in auto stocks.
• Margin call pressures: High leverage in mid-smallcap stocks triggered margin calls, intensifying the rout in broader markets.

Anil Singhvi’s take: ‘Time to be cautious, not panic’ Market Guru Anil Singhvi emphasized that the ongoing correction is not unexpected. He highlighted that the Nifty’s last strong support zone lies between 22,800-22,950, adding, “If these levels hold, we could see stability; otherwise, further downside cannot be ruled out.”

On broader market carnage, Singhvi noted, “Heavy leverage in mid-smallcap stocks has made them highly vulnerable. It’s a time for retail investors to be cautious, not aggressive buyers.”

Top losers and gainers:

• Apollo Hospitals, Eicher Motors, Shriram Finance, SBI Life, and Power Grid fell 2-6 per cent.
• Nifty Realty index plunged over 3 per cent, with Phoenix Mills and Oberoi Realty dropping nearly 5 per cent each.

Gainers included Adani Enterprises, Grasim, Infosys, Trent, and Bharti Airtel, rising 1-3 per cent.

What’s next?

Experts expect markets to remain volatile in the coming sessions, with focus on global cues, FII activity, and currency movements. Analysts advise investors to avoid bottom-fishing in mid-smallcaps and stick to quality large-cap stocks as FIIs may return once the dollar weakens.

Investors are advised to keep a close watch on key support levels and earnings reports in the coming days to gauge further market direction.