Sensex dropped 818.36 points to 75,372.10, hitting a day’s low of 75,348.06.
Nifty slipped 257.35 points to 22,834.85, breaching the 23,000 mark.
Key Drivers Behind the Market Downturn
FPI Selling Pressure: FPIs pulled out ₹69,000 crore in January, overshadowing ₹67,000 crore buying by DIIs.
Sector-Wide Weakness: IT and metal stocks dragged the indices; mid-cap and small-cap stocks also saw heavy selling.
Global and Domestic Concerns Weigh on Sentiments
Global Uncertainties: Investors await the US Federal Reserve’s policy decision amid fears of tighter liquidity.
Domestic Concerns: Anxiety around the upcoming Union Budget and RBI’s monetary policy decision heightened caution.
Analyst Insights Kranthi Bathini of WealthMills Securities highlighted that Nifty’s dip below 23,000 is a critical psychological level, sparking panic and increased selling.
