Nifty falls after six sessions: Factors behind today's crash, investor wealth, market outlook and more

Nifty snapped six days of gaining streak on Thursday hit by valuation concerns and rising oil prices—led by tensions between Iran and Israel. 

The benchmark index fell 253 points to 24,888. The 50-stock index had gained 600 points in previous six sessions. Sensex crashed 823 pts to 81,691. 

Vinod Nair, Head of Research, Geojit Investments said, "Consolidation in domestic markets is evolving into a broad-based trend, now extending to large-cap stocks. Valuation concerns and rising oil prices—driven by Middle East tensions—are fuelling risk aversion among investors. IT, metals, and auto sectors have mostly underperformed. Adding to the uncertainty, the U.S. is considering unilateral tariff hikes on several key trading partners, with a decision expected within the next one to two weeks, ahead of an early July deadline. Meanwhile, gold is witnessing a fresh leg of safe-haven buying, amid escalating geopolitical and economic risks."

Market cap of BSE-listed firms fell by Rs 6 lakh crore to Rs 449.58 lakh crore today against Rs 455.57 lakh crore on Wednesday. 

Top losers on Sensex were Tata Motors, Titan, Eternal, PowerGrid, Tata Steel and L&T shares fell up to 3%. Bajaj Finance, Asian Paints and Tech Mahindra were the only gainers on Sensex, rising up to 0.73%. 

Prashanth Tapse, Senior VP (Research), Mehta Equities said, “A host of factors triggered a massive slump in local benchmarks, as investors exited stocks at will weighed down by weak global sentiment coupled with the possibility of Israel attacking Iran, and a renewed tariff threat by US President Trump. Spike in crude oil prices and erratic FII fund flows this month has been adding to the overall uncertainty.”

Shrikant Chouhan, Head Equity Research, Kotak Securities said, "Short-term market texture is weak, but a fresh selloff is possible only after the dismissal of 24,825/81500 or below the 20-day SMA (Simple Moving Average). Below this level, the market could slip to 24,700-24650/81100-81000. On the other hand, above 24,920/81800, we could expect a quick intraday pullback rally up to 25,000-25,050/82000-82150."

BSE midcap and small cap indices ended 705 pts lower and 750 pts lower, respectively.

In terms of sectors, BSE capital goods, consumer durables, auto, oil and gas, metal indices were the top losers crashing 1386 pts, 1185 pts, 914 pts, 587 pts and 502 pts, respectively in the current session.  All 19 sectoral indices ended in the red. 

Previous session 

Sensex rose 123 pts to 82,515 and Nifty gained 141 points to 25,141. Market cap of BSE-listed firms climbed to Rs 455.57 lakh crore today against Rs 455.41 lakh crore on Tuesday.