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Indian equity benchmarks opened sharply lower as heavy selling dragged the Sensex down over 500 points, while Nifty 50 slipped below the 25,550 mark. Market volatility surged, with India VIX rising nearly 9 percent, reflecting investor nervousness.
Stock Market Opens Weak; Volatility Spikes as India VIX Jumps 9%
Mumbai: The stock market witnessed heavy selling on the first trading day of the week. The BSE Sensex fell sharply at the opening bell, falling by more than 500 points. Market pressure was evident in early trade, raising investor concerns. IT, realty, and financial stocks were the most affected by the selling.
The NSE Nifty 50 also came under pressure and slipped below the crucial 25,550 level. As soon as the market opened, the Nifty weakened, trading below 25,600. According to reports, the Nifty even breached the 26,000 level, a level seen for the first time since November 11. Due to heavy pressure in the realty sector, the Nifty Realty Index suffered the biggest losses.
The India VIX, a gauge of market volatility, jumped 8 to 9 percent today. This rise in the India VIX indicates that the market may remain volatile in the coming sessions. A rise in the VIX typically reflects growing uncertainty and fear among investors.
Realty, metal, and IT stocks witnessed the most selling in today's trading. Several major real estate stocks fell by 2 to 4 percent. Banking and financial stocks also remained weak, providing little support to the market.
Market experts believe that weak global cues, fluctuations in US bond yields, and geopolitical tensions have led investors to adopt a cautious stance. Profit-booking after the recent rally is also considered a major reason for the decline. Selling by foreign investors has also increased market pressure.
Experts believe that the current decline is not a cause for panic, but market volatility may persist in the short term. Investors are advised to focus on select strong stocks and invest with risk management. Market direction in the coming sessions will depend on global and domestic cues.