Sensex slides 780 points, Nifty below 25,900 as broad-based selloff wipes out ₹8 lakh crore

The equity benchmark indices BSE Sensex and NSE Nifty closed sharply lower on Thursday (January 8), with benchmarks slipping below all key technical levels as selling pressure intensified across sectors. The NSE Nifty failed to hold the 25,900 mark, while the BSE Sensex ended the session deep in the red amid an all-round fall in stocks.

The Sensex declined 780 points to close at 84,181, while the Nifty fell 264 points to settle at 25,877. Market wealth took a significant hit, with BSE-listed companies erasing more than ₹8 lakh crore in market capitalisation during the session.

From the Sensex basket, ICICI Bank and SBI Life Insurance Company Ltd were the major gainers. Hindalco Industries Ltd, Jio Financial Services Ltd, Oil And Natural Gas Corporation Ltd, Tech Mahindra Ltd, JSW Steel Ltd and Wipro Ltd

were the biggest laggards.

Market breadth remained firmly tilted towards declines, with the advance-decline ratio at 1:5. As many as 45 stocks in the Nifty index closed in the red, reflecting the widespread nature of the selloff. All sectoral indices ended lower, with metal and IT emerging as the biggest losers of the day.

Metal stocks corrected sharply following a fall in metal prices, with several stocks declining by as much as 8 percent. The IT sector also came under pressure ahead of the earnings season, with Wipro, Tech Mahindra and TCS among the top losers in the space.

The Nifty Bank index slipped 304 points to 59,687, while the Midcap index dropped 1,200 points to close at 60,223, pointing to heavy selling beyond frontline stocks. Capital goods shares weakened on reports that Chinese companies could be allowed to participate in government tenders. BHEL, ABB, Siemens, CG Power and Hitachi were among the top losers in the capital goods segment.

Oil and gas stocks faced pressure after reports that the US is looking to pass a bill related to sanctions on Russian oil. PSU banks also saw profit booking following the recent upmove, with the Nifty PSU Bank index ending 2% lower.

Amid the broader weakness, a few stocks bucked the trend. IDFC First Bank rose 2% after cutting its savings interest rate by up to 200 basis points. Balaji Amines surged 14% on expectations of incentives from the Maharashtra government, while Panacea Biotec gained 13% after completing a clinical trial for its dengue vaccine. Niva Bupa advanced over 3 percent on a healthy showing in December.

On the downside, GM Breweries extended its losing streak, falling another 8%. US trade-sensitive names also saw sharp declines, with Gokaldas and Apex Frozen Foods down 8% each.