Indian equities witnessed a sharp sell-off on Tuesday, with benchmark indices falling more than one percent amid concerns over slowing economic activity, an uneven monsoon and continued uncertainty over global growth prospects.
The Sensex plunged 893 points, or 1.16 percent, to close at 76,200.68, while the Nifty 50 declined 279 points, or 1.16 percent, to settle at 23,824.10.
The broad-based weakness wiped out nearly ₹6 lakh crore in investor wealth in a single session. The total market capitalisation of BSE-listed companies fell to about ₹475 lakh-crore from ₹480.6 lakh-crore in the previous session.
Investor sentiment was dented after fresh business activity data pointed to a moderation in growth. India's services sector expanded at its slowest pace in 17 months during June, while manufacturing growth eased to a three-month low.
The HSBC Flash India Manufacturing PMI Output Index slipped to 57.4 in June from 58.0 in May. The Flash Services Business Activity Index declined to 57.3 from 59.8 in the previous month, indicating a slowdown in momentum across key sectors of the economy.
Market participants also remained cautious over the progress of the southwest monsoon. Reports suggest rainfall has remained deficient across a large number of districts, raising concerns about agricultural output, rural incomes and consumer demand.
Although easing tensions in West Asia and lower crude oil prices offered some support, investors largely focused on domestic growth concerns and the broader global economic outlook.
Selling pressure was visible across most sectors. Metal stocks emerged as the worst performers, with the Nifty Metal index dropping 3.22 percent amid concerns over global demand and commodity prices.
The Nifty IT index fell 2.23 percent as technology stocks mirrored weakness in global markets. PSU Bank stocks also came under pressure, with the sector index losing 1.97 percent.
The Nifty Bank index declined 1.30 percent, while Financial Services slipped 0.96 percent. Consumer Durables, Media and Realty indices also ended significantly lower.
Pharma and healthcare stocks bucked the trend. The Nifty Pharma index gained 0.92 percent and the Healthcare index rose 0.54 percent.
Forty-three of the 50 Nifty constituents ended in negative territory. Infosys, Wipro and TCS were among the biggest drags on the benchmark index.
On the positive side, Cipla, Power Grid and Dr Reddy's Laboratories emerged as the top gainers.
Broader markets were not spared. The Nifty Midcap 100 index fell 1.05 percent, while the Nifty Smallcap 100 index declined 0.48 percent.
Meanwhile, the rupee weakened by 11 paise to close at 94.74 against the US dollar.
Market analysts noted that the Nifty is approaching the lower end of its recent trading range of 23,800-24,200. A sustained move below 23,800 could increase downside pressure and open the door for a decline towards the 23,500-23,600 zone. On the upside, the 23,930-23,950 region is expected to act as immediate resistance for any recovery attempt.
