New Delhi, Jan 27 – Stock investors faced significant losses on Monday as major indices plummeted to their lowest levels in over seven months. This decline was largely driven by widespread selling, fueled by growing uncertainty surrounding US trade policy, resulting in a staggering loss of Rs 9.28 lakh crore in market wealth.

The market capitalization of companies listed on the Bombay Stock Exchange (BSE) fell by Rs 9,20,654.51 crore, bringing the total to Rs 4,10,31,199.48, equivalent to USD 4.75 trillion. The market breadth was notably negative, with 3,588 shares declining, 532 advancing, and 114 remaining unchanged. The 30-share BSE index, known as the Sensex, dropped by 824.29 points or 1.08 percent, closing at 75,366.17, a level not witnessed since June 2024. At its lowest point during the day, the index fell by 922.87 points or 1.2 percent to reach 75,267.59.

“Dalal Street continues to experience significant losses, extending the downward trend from last Friday, as concerns over slowing corporate earnings diminish hopes for a revival and amplify pessimism regarding lackluster earnings,” stated Ameya Ranadive, Chartered Market Technician, CFTe, and Senior Technical Analyst at StoxBox.

The day was marked by heightened volatility, influenced by various factors including anticipation surrounding the upcoming fiscal budget, worries about slowing corporate earnings, and uncertainties related to the forthcoming Federal Open Market Committee (FOMC) meeting. Geopolitical tensions and ongoing selling by foreign institutional investors (FIIs) further dampened market sentiment. Mid and small-cap stocks were particularly affected, as inflated valuations prompted a sell-off across these segments.

Among the shares listed on the Sensex, HCL Technologies experienced the steepest decline, falling by 4.49 percent, followed by Zomato, Tech Mahindra, PowerGrid, and Tata Motors. Other notable declines included shares of Infosys, Tata Steel, HDFC Bank, Reliance Industries, and Bharti Airtel, all contributing to the index’s drop to over seven-month lows.

In contrast, ICICI Bank defied the trend, rising by 1.39 percent following positive third-quarter results. Other gainers included Hindustan Unilever, Mahindra & Mahindra, State Bank of India, and Larsen & Toubro.

The BSE SmallCap index fell by 3.51 percent, while the Midcap index declined by 2.68 percent. Sector-wise, telecommunications suffered the most, plummeting by 3.83 percent, followed by Focused IT at 3.34 percent. Other sectors that experienced declines included IT (3.31 percent), Teck (3.04 percent), Metal (2.86 percent), Healthcare (2.73 percent), Industrials (2.63 percent), Oil & Gas, and Commodities (2.42 percent each), along with Utilities (2.41 percent).

“Looking ahead, the market is expected to remain volatile, as uncertainties surrounding the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting next week and the FOMC meeting this week are likely to weigh heavily on market performance,” Ranadive added.

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 5,015.46 crore on Monday.