Markets Decline Amid Tech Rout
Sensex and Nifty Decline Sharply as Global Tech Sell-off Weighs on Indian Equities
Anonymous
Key Points
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Intraday volatility showed sharp swings, with the Sensex hitting a high of 77,194.83 and a low of 76,082.51 before closing at 76,200.68, indicating persistent intraday pressure.
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Nifty IT index declined by over 2%, with Nifty Metal down about 3.2% and Nifty PSU Bank around 2% weaker, underscoring broad sector weakness beyond IT.
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Investor wealth erosion was substantial, with market capitalisation of BSE-listed companies shrinking by about Rs 5.77 lakh crore.
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Foreign institutional investors (FIIs) continued to exit, offloading roughly Rs 635.91 crore on Monday, contributing to the selling pressure.
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Global cues remained negative on the session, with tech-led selling weighing on sentiment; regional markets reflected the weakness, including a sharp slide in Kospi (about 10%), underscoring spillover effects from global markets.
Indian stock markets took a sharp beating on Tuesday, June 23, as the Sensex crashed 893.39 points to close at 76,200.68 and the Nifty 50 fell 278.80 points to 23,824.10. The sell-off wiped out roughly ₹5.77 lakh crore in investor wealth in a single session, according to The Statesman.
The trigger was a catastrophic 10% collapse in South Korea's KOSPI index, which set off a wave of selling across Asian markets. Tech and metal stocks bore the brunt of the damage. The Nifty IT index fell 2.23% and the Nifty Metal index dropped 3.22%, according to Fortune India.
South Korea's KOSPI Crash Triggers Asian Contagion
The KOSPI's 10% plunge on Tuesday triggered a 20-minute trading halt in Seoul. The cause was a local media report suggesting SK Hynix was slowing AI memory chip expansion and shifting back to commodity DRAM production. This raised fears that the AI-driven capital spending boom had peaked, according to The Straits Times.
The shockwaves hit markets across Asia. Japan's Nikkei fell 3.55% and Hong Kong's Hang Seng dropped 2.05%, according to Investing.com. By comparison, India's 1.16% decline looked relatively contained. Still, the KOSPI rout erased the optimism from Monday's rally and sent investors rushing for the exits.
IT and Metal Giants Led India's Sharpest Losses
India's biggest IT companies took heavy hits. Infosys fell 3.42%, Wipro dropped 3.21%, and TCS shed 3.19%, according to Fortune India. In metals, Tata Steel and JSW Steel each lost 3.10%. The Nifty PSU Bank index also fell nearly 2%, with HDFC Bank and State Bank of India under pressure, according to The Hindu.
The Sensex swung wildly during the session. It hit a morning high of 77,194.83 before plunging to an intraday low of 76,082.51, according to Angel One. Ponmudi R., CEO of Enrich Money, said the previous day's "oil-driven rally" was always unsustainable against a "broad technology-led selloff" and a weakening rupee.
Foreign Investors Exit as Rupee Slides Toward 95
Foreign Institutional Investors, or FIIs, had already signaled caution. On Monday, they sold ₹635.91 crore worth of Indian equities even as the market rose 291 points, according to Rediff. Their persistent selling over the previous week created the liquidity gap that made Tuesday's slide far worse.
The Indian rupee hit a provisional low of 94.74 against the US dollar during the session, according to Fortune India. A weaker rupee makes imports costlier and raises inflation fears. Analysts say the Reserve Bank of India may need to step in to defend the currency, even as global crude oil prices sit at roughly $77.46 per barrel.
Pharma Holds Up, But All Eyes Turn to Micron Earnings
Not everything fell. The Nifty Pharma index gained 0.92% and the Healthcare index rose 0.54%, reflecting a classic "risk-off" rotation into defensive stocks like Cipla and Dr. Reddy's, according to Fortune India. Remarkably, 200 stocks still hit 52-week highs on Tuesday, including Adani Green and Nykaa, according to The Statesman.
The big question now is whether the AI selloff is a brief scare or the start of a longer downturn. Markets are watching US chipmaker Micron Technology's earnings report on Wednesday, June 24. VK Vijayakumar of Geojit said the regional crash reflects "sharp profit-taking after a record rally" that had left valuations stretched, according to Business Standard. Micron's numbers could set the tone for weeks ahead.
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