Stock market today: The stock market crash at the outset on Monday, January 13, pulled down by real estate, financial services, and consumer durables firms. At 9:20 a.m. IST, the benchmark BSE Sensex fell by 677.22 points, or 0.88%, to 76,701.69. The broader NSE Nifty fell 212.90 points, or 0.91%, to 23,218.60.
This also comes with the rupee hitting an all-time low of 86.3537 per dollar, according per Bloomberg data. This is because the US currency is currently surging due of solid jobs data.
Why is the stock market down today?
US employment growth: Data released on Friday revealed an unexpected acceleration in US employment creation in December, sending 10-year US Treasury rates to a 14-month high. This increased the likelihood of fewer rate cuts in 2025, lowering the appeal of emerging nations like India to investors.
Bond Yields: The 10-year US Treasury yield rose to 4.73%, its highest level since April, owing to good job data and strong service sector growth. Analysts predict that the Federal Reserve will hold interest rates steady in January, which could strengthen the dollar and drive bond yields higher.
Continued FIIs selling: Foreign portfolio investors (FPIs) and foreign institutional investors (FIIs) continue to sell aggressively in 2025. As of January 10, they have sold stocks worth Rs 22,259 crore in the Indian market.
Oil reaches more than three-month high: With hopes that increased U.S. sanctions may cut off Russian crude supplies to China and India, the world’s largest and third-largest consumers, oil prices rose to their highest level in more than three months at Monday’s opening.
Which stocks had the biggest declines?
Zomato Ltd. experienced the largest decline of any of the 30 Sensex equities, dropping 2.86% to trade at ₹236.05. Following this was Power Grid Corporation of India Ltd., which dropped 2.07%, trading at ₹293.60, and Mahindra & Mahindra Ltd., which dropped 2.13%, trading at ₹3,026.05.
There were just two Sensex stocks that were up. These were Axis Bank Ltd., which increased by 0.44% and was trading at ₹1,045.40, and IndusInd Bank Ltd., which increased by 2.05% and was trading at ₹956.80.
Rupee plummets to its lowest point ever
In early trading, the rupee fell 23 paise to hit an all-time low of 86.27 against the US dollar, while the dollar index was trading at about 109.9. Foreign outflows and the currency exchange rate are intimately related, impacting one another as both causes and effects. The rupee fell 18 paise versus the US dollar last Friday, closing at 86.04. In the meantime, 10-year US bond yields remained high at 4.76%, while the dollar index increased 0.22% to reach its two-year high of 109.72.
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