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Nifty Drops 550 Points on Thursday: Top 10 Stocks Behind the Fall

On Thursday, October 3, 2024, the Nifty 50 index saw a sharp decline, closing 550 points lower. This drop was unexpected and left investors worried. Market experts pointed to various factors that led to this sudden plunge in the market. The fall has been attributed to several key players in the index, with some stocks bearing more responsibility than others.

Here’s a detailed look at the top 10 contributors to this significant drop and what caused them to weigh down the index.

1. Reliance Industries

Reliance Industries, one of the heaviest stocks in the Nifty 50, played a major role in the market’s decline. The stock fell nearly 3% after reports of lower-than-expected quarterly earnings surfaced. The company’s performance had been under scrutiny, and with its large market capitalization, the decline impacted the overall index significantly.

2. HDFC Bank

HDFC Bank also contributed heavily to the market downturn. The stock fell by 2.5% amid concerns about rising bad loans and lower credit growth. Investors reacted negatively to the bank’s outlook, which is crucial for the financial sector, causing further stress in the market.

3. Infosys

Infosys, a major IT player, saw its stock drop by over 2% due to weaker global demand for technology services. With the global economy facing uncertainties, especially in the US and Europe, IT companies like Infosys are facing pressure. The stock’s performance on Thursday added to the index’s fall.

4. Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) followed a similar trend as Infosys. It fell 1.8%, mainly due to concerns about a slowdown in the IT sector. TCS has a considerable weightage in the Nifty 50, and its performance on Thursday contributed significantly to the index’s drop.

5. State Bank of India (SBI)

SBI, India’s largest public sector bank, saw a sharp drop in its stock price by 2.7%. Reports of rising bad debts and lower-than-expected profits triggered a sell-off in banking stocks. SBI, being one of the biggest contributors to the financial sector, played a major role in pulling down the Nifty.

6. ICICI Bank

ICICI Bank also witnessed a decline, with its stock falling by 2%. The banking sector was already under pressure due to concerns over rising non-performing assets (NPAs), and ICICI Bank was no exception. This added to the broader financial sector woes, pushing the index down further.

7. Bharti Airtel

Telecom giant Bharti Airtel fell by 2.3%. The company faced issues related to high operational costs and growing competition in the telecom sector. Bharti Airtel’s drop contributed to the index’s overall decline, particularly because of its significant market weightage.

8. Larsen & Toubro (L&T)

Larsen & Toubro, a leading engineering and construction firm, saw its stock fall by 2.5%. Concerns over project delays and lower infrastructure spending led to a drop in the stock’s price. This decline weighed heavily on the industrial and infrastructure sectors, which are vital components of the Nifty 50.

9. Asian Paints

Asian Paints, a key player in the consumer goods sector, fell by 2.1%. Investors were worried about rising raw material costs and weakening demand in the paint industry. The decline in this stock added to the overall bearish sentiment in the market on Thursday.

10. Maruti Suzuki

India’s largest automaker, Maruti Suzuki, saw its stock dip by 1.9%. Reports of declining car sales and supply chain issues negatively impacted investor sentiment. The automotive sector has been facing challenges globally, and Maruti Suzuki’s fall was a reflection of these broader issues.

Global Factors Adding to the Fall

While the domestic factors played a key role in the decline of the Nifty 50, global events also contributed to the market downturn. Concerns over inflation, rising oil prices, and global economic uncertainties have been creating a challenging environment for investors worldwide. As a result, foreign institutional investors (FIIs) pulled out significant amounts of money from Indian equities, adding further pressure on the market.

Sector-Wise Impact

The fall in the Nifty 50 wasn’t limited to just a few stocks. Major sectors, including banking, IT, and consumer goods, saw heavy losses. The banking sector was the worst hit, with major players like HDFC Bank, SBI, and ICICI Bank seeing significant declines. The IT sector was also under pressure due to concerns over global demand and weakening profitability.

Investor Sentiment

Investor sentiment remained cautious as uncertainty loomed large over both the global and domestic economies. The Indian market has been sensitive to global movements, and Thursday’s decline reflects broader concerns about inflation, rising interest rates, and global economic slowdown.

What’s Next for Nifty?

As the market closed 550 points lower, investors are now waiting for signs of recovery. Analysts believe that the market might remain volatile in the coming weeks as both domestic and international factors continue to influence stock prices. Investors are advised to remain cautious and closely monitor global economic trends.

Technology Points
Technology Points
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