On September 6, 2024, the Indian stock market experienced a significant crash. The Nifty 50, one of the key indices, saw a sharp decline in its value, reflecting widespread concerns among investors. The market opened at 25,093.70, reaching a high of 25,168.75, but soon began to tumble. It hit a low of 24,801.30 before closing at 24,852.15. This marked a significant drop of 292.95 points, equivalent to a 1.17% decrease.
The Nifty Bank index also faced a severe downturn. It opened at 51,200.40 and reached a high of 51,380.05. However, the index couldn’t maintain its gains and fell to a low of 50,447.30 before closing at 50,576.85. This represented a steep decline of 896.20 points or 1.74% from the previous close. The overall sentiment in the market was bearish, with most sectors facing substantial losses.
Market Overview
The market’s performance on this day was marked by widespread selling across various sectors. Nifty Midcap and Nifty Small Cap indices were particularly hit hard. The Nifty Midcap 50 fell by 291.20 points, closing at 16,413.95, a decline of 1.74%. Similarly, the Nifty Small Cap 50 dropped by 95.90 points, ending the day at 9,226.60, a 1.03% decrease. The Nifty Next 50, which includes the top 50 companies outside the Nifty 50, also fell significantly by 1,023.95 points, closing at 74,462.00, a 1.36% decline.
Other notable indices also experienced losses. The Nifty 100 dropped by 310.55 points, closing at 25,928.55, down by 1.18%. The Nifty 500, which covers a broader range of companies, fell by 285.10 points to 23,477.70, a 1.20% decline. The Nifty Midcap 100 and Nifty Smallcap 100 indices also saw declines of 946.55 points and 244.90 points, respectively.
Sector-Wise Performance
The crash affected almost every sector. The Nifty Auto index declined by 308.15 points, closing at 25,527.15, down by 1.19%. The Nifty Private Bank index also faced significant losses, falling by 396.70 points to close at 25,328.80, a 1.54% decline. The Nifty FMCG index, representing the fast-moving consumer goods sector, dropped by 524.70 points, ending at 63,175.70, a 0.82% decrease.
The Nifty IT index, which includes major information technology companies, fell by 415.75 points, closing at 42,228.90, a 0.97% decline. The Nifty Pharma index, which tracks the pharmaceutical sector, saw a smaller decline of 113.30 points, closing at 23,043.40, down by 0.49%.
Volatility and Investor Sentiment
The market’s volatility was evident with the India VIX, a measure of market risk and investor sentiment, rising sharply. The India VIX increased by 1.01 points, a 7.11% rise, indicating heightened fear and uncertainty among investors. This surge in volatility suggests that traders were expecting further fluctuations in the market.
