BSE-listed Companies' M-Cap Slips Below Rs 400 Lakh Crore For First Time In 8 Months

The domestic benchmark equity indices fell for the eighth straight session on February 14, registering its longest losing streak in two years. The total market capitalisation of all the BSE-listed companies slipped below the Rs 400 lakh crore-mark for the first time since June 5, 2024.

However, the market did manage to recover a little from intraday lows. At close, BSE-listed companies' combined market cap stood at Rs 4,00,19,247 crore or Rs 400.2 lakh crore.

The BSE Sensex plunged 699.33 points, or 0.92 per cent, before recovering slightly to close at 75,939.21, down by 199.76 points, or 0.26 per cent. Similarly, the NSE Nifty 50 ended the session at 22,929.25, down by 102.15 points, or 0.44 per cent. During the session, the 50-share index slipped 256.55 points, or 1.11 per cent to touch an intraday low of 22,774.85.

Dragging the Sensex were Adani Ports, UltraTech Cement, Sun Pharma, IndusInd Bank, and NTPC, each falling in the range 2 to 4.5 per cent. In the Nifty 50, Adani Ports again led the losses, followed by Bharat Electronics, Adani Enterprises, Trent, and Grasim Industries.

All Sectoral Indices Close In Red

All the sectoral indices closed in the red zone. Among the major ones were Pharma, Auto, Realty, oil & gas and PSU Banks. Nifty IT closed flat, however, with a slight negative bias.

Apart from Nifty Media, which fell 3.4 per cent, Nifty Pharma was the biggest sectoral loser among major indices, closing 2.87 per cent lower. The pharma index was dragged mainly by Natco Pharma and Laurus Labs, with each falling over 9 per cent.

Nifty Bank index, which tracks movement of top 12 banks, lost 260.40 points, or 0.53 per cent, to end at 49,099.45.

Smallcap, Midcap Bleed More

The selling pressure was particularly more intense in the smallcap and midcap segment, with the Nifty Smallcap 100 and Nifty Midcap 100 falling 3.55 per cent and 2.41 per cent, respectively, hitting their lowest level in eight months.

The Nifty Smallcap 100 and Nifty Midcap 100 have crashed 21.85 per cent and 18.5 per cent, respectively, from their all-time highs.

Why Stock Market Crashed Today?

Vinod Nair, Head of Research, Geojit Financial Services, says, “The risk-averse sentiment continued to rule investors’ minds as corporate earnings are significantly lower than the market expectations during the start of the year, especially for mid- and small caps.”

According to Nair, muted earnings trend, weaking rupee along with external factors like tariffs are expected to keep the sentiments weak in the near term, which could further push FIIs outflows. He say, volatility is expected to stay elevated until there is clarity on tariffs and a recovery in corporate earnings.

Bajaj Broking Research says, “Concerns over slowing economic growth, weak corporate earnings, and stretched valuations have fueled investor caution. Additionally, global macroeconomic uncertainties and fears of a potential tariff war under a possible second term of US President Donald Trump have weighed on sentiment. Rising US bond yields and a stronger dollar have also contributed to capital outflows, as foreign investors seek safer returns in developed markets.”

The broking firm adds, “The Indian rupee has depreciated nearly 1.5% against the US dollar year-to-date, making it the second-worst performing Asian currency after the Indonesian Rupiah. This depreciation has further pressured foreign portfolio investments, leading to over $10 billion in outflows from Indian equities this year.”

Nifty 50 Technical Outlook

Rupak De, Senior Technical Analyst at LKP Securities, says, “The Nifty continues to reel under a bear attack, closing below 23,000 after spending a few days floating above this level.”

As per De, a decisive fall from 22,800 could trigger further panic in the market. On the higher end, 23,100 appears to be the immediate resistance, above which the market may see some respite, he says.