Winning Bizness Economic Desk
Mumbai. Indian equity markets witnessed a sharp downturn on Thursday after a fatal crash involving an Air India Boeing 787 near Ahmedabad triggered panic across sectors, especially aviation and transport. The broader selloff was also fuelled by heavy profit-booking that had been building since earlier this week. Both key indices fell sharply, wiping out early gains and pulling down investor confidence.
Indices reverse early gains to end deep in red
The BSE Sensex opened positively, climbing 108 points to touch 82,623.16 in the morning session, while the NSE Nifty rose 38.7 points to hit 25,180.10. However, news of the crash swiftly reversed the sentiment. The Sensex eventually lost 823.16 points, or 1.00%, to settle at 81,691.98. The Nifty 50 shed 253.20 points, or 1.01%, closing at 24,888.20. Out of the 30 stocks on the Sensex, 26 ended in negative territory.
Aviation stocks tumble on safety fears
The biggest blow was dealt to aviation counters following the Air India incident. Shares of Air India dipped 3.53%, while InterGlobe Aviation (IndiGo) dropped 3.32%. SpiceJet also declined by 1.78%. The market reacted swiftly to fears around operational safety, insurance liabilities, and passenger sentiment following the Ahmedabad crash that involved 242 people on board.
IT, auto, FMCG stocks also under pressure
Tech majors Infosys and Tech Mahindra were among the worst hit on the Sensex, alongside Tata Motors. The IT and auto sectors bore the brunt of global cues and valuation concerns. FMCG and metal counters also witnessed a pullback, as investors shifted funds out of high-valuation stocks. Financial stocks like HDFC Bank and Bajaj Finance, however, stayed in the green, limiting the overall market damage.
Global cues remain shaky, adding to volatility
Globally, Asian markets showed mixed performance. The Kospi and Shanghai Composite posted mild gains, while Japan’s Nikkei 225 and the Hang Seng Index traded lower. On Wall Street, US markets ended in the red on Wednesday, further adding to the nervousness in domestic trading floors.
Thursday’s Market Snapshot
- BSE Sensex: Down 823.16 points (1.00%) at 81,691.98
- NSE Nifty 50: Down 253.20 points (1.01%) at 24,888.20
- Top gainers: Bajaj Finserv, Bharti Airtel, NTPC, HDFC Bank
- Top laggards: Infosys, Tech Mahindra, Tata Motors
- Aviation stocks hit: Air India -3.53%, Indigo -3.32%, SpiceJet -1.78%
- Global trend: Mixed in Asia; negative cues from US markets
Quote -
"Markets were already on a cautious footing due to overstretched valuations. The plane crash acted as an immediate trigger, particularly hammering sentiment in aviation and transport-linked counters. Expect short-term volatility to persist until clarity emerges from the aviation regulators and global cues stabilize."
— Nilesh Shah, Equity Strategist, Motilal Oswal Financial Services
