Stock market crash: Sensex crashes 2,400 points in 3 days, investors lose ₹18 lakh crore as Nifty slips below 25,000
We’ve seen sharp losses on Dalal Street over the past few days. The BSE Sensex dropped around 2,400 points in just three sessions, while the Nifty 50 slipped below the key 25,000 level. This triggered panic and wiped out huge investor wealth. Reports estimate as much as ₹18 lakh crore has been erased from market value during this slide.
What Happened?
- Sensex Drop: Sensex fell about 2,400 points in 3 days.
- Nifty Level: Nifty slipped below 25,000, a key support level.
- Market Loss: Total market cap loss reached ₹18 lakh crore.
- Sector Impact: Most sectors saw sharp declines, especially banks, IT, and auto.
- Investor Mood: Trading became nervous as stocks swung widely.
Why Did the Market Fall?
- Global Tensions: Trade worries and geopolitical stress hit global markets.
- FII Selling: Foreign investors have been selling Indian stocks for weeks, reducing demand.
- Weak Earnings: Several big companies posted disappointing earnings, triggering a sell-off.
- Technical Sell-off: Nifty breaking below 25,000 triggered automatic selling and stop-losses.
- Rupee Weakness: The rupee slid against the dollar, increasing market fear.
- Combined Effect: All factors together created a strong bearish sentiment.
Impact on Investors
- Wealth Loss: Investors lost about ₹18 lakh crore in market value.
- Retail Pain: Small investors saw portfolio values drop fast.
- Institutional Loss: Big funds also faced major losses as stocks fell.
- Mutual Fund Pressure: The index decline pulled down many mutual fund returns.
- Investor Fear: Many investors considered selling to avoid more losses.
- Reminder: Markets move in cycles, and corrections are normal.
Technical Analysis: Nifty Below 25,000
- Key Support Broken: Nifty below 25,000 is a major technical warning.
- Selling Pressure: Breaking support triggered more selling.
- Weak Market Breadth: More stocks fell than rose, showing broad weakness.
- Oversold Conditions: Indicators show oversold levels, which may lead to a short bounce.
- Volatility Risk: The market remains volatile until support levels stabilize.
What Should Investors Do Now?
- Stay Calm: Panic selling locks in losses.
- Review Portfolio: Check if your portfolio matches your risk level.
- Diversify: Avoid putting too much money in one sector or stock.
- SIP Strategy: SIPs can benefit during dips because you buy at lower prices.
- Avoid Timing: Trying to catch the bottom rarely works.
- Get Advice: Consult a financial advisor if you are unsure.
Conclusion
The recent Sensex fall, 2,400 points in three days, is a stark reminder of how volatile markets can be. Key drivers included global tensions, foreign selling, weak earnings, and technical breakouts that amplified declines. Yet, market corrections are normal, especially after long rallies.
Investors should stay informed, avoid knee-jerk reactions, and focus on long-term goals rather than short-term price moves. With careful planning and patience, volatility can often create opportunities for disciplined investors.
FAQS
A mix of global trade worries, FII selling, weak earnings, and technical sell-offs pushed the market down.
It means the market broke a key support level, which signals more selling pressure and higher volatility.
Investors lost about ₹18 lakh crore in market value during the recent fall.
It’s best to stay calm, avoid panic selling, and focus on long-term goals. SIPs can benefit during market dips.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
