Heavy fall in stock market due to weak GDP estimates, Sensex falls 600 points, Nifty slips below 23,600

Indian stock market opened with a slight rise today. In pre-opening, BSE SENSEX gained 120.34 points to 78,319.45 while NIFTY 50 saw a rise of 38.75 points and opened at 23,746.65. However, after this the market saw a decline. Sensex and Nifty lost their initial gains and went into the red mark.

A huge decline was seen in the stock market in the afternoon trade. At 12:18 pm, BSE Sensex is trading at 77,591.09 with a huge fall of 608.02 points, showing a decline of 0.78%. At the same time, the Nifty 50 index fell 174.65 points to 23,533.25, a decline of 0.74%.

Growing concerns about economic slowdown put pressure on the stock market, causing a decline in the Sensex and Nifty. Due to this widespread sell-off, investors' wealth decreased by about Rs 3.3 lakh crore, according to the BSE market capitalization.

Around 9.24 am, the BSE SENSEX fell 219.97 points and is trading at 77,979.14, while the NIFTY 50 also fell 59.55 points and is trading at 23,648.35.

Nifty Bank fell 117.25 points or 0.23 percent to 50,084.90. At the same time, the Nifty Midcap 100 index was trading 463.95 points or 0.82 percent lower at 56,405.35. The Nifty Smallcap 100 index was also trading 105.35 points or 0.56 percent lower at 18,568.10.

The stock market is witnessing a decline due to selling in auto, IT, PSU banks, financial services, FMCG, metal, realty and media sectors.

The main reason for today's decline in the stock market is the new data released regarding India's GDP growth rate, in which the pace of economic growth is estimated to be slow. Apart from this, mixed trends are also being seen in the global markets, which are affecting the Indian market.

According to the latest data from the government, India's GDP growth rate is estimated to decline to 6.4% in the financial year 2024-25, which will be the lowest in the last four years. This estimate has been made due to weakness in the manufacturing and service sectors. According to data from the National Statistical Office (NSO), India's GDP will grow at a slower pace than the previous financial year, when it grew at a rate of 8.2%. If this estimate proves to be correct, then India's economy will grow at the slowest pace since 2020-21.

However, the Reserve Bank of India (RBI) and the Finance Ministry had projected the GDP growth rate to be slightly higher, between 6.6% and 6.5-7%. In such a situation, there is a stir in the market and investors seem cautious.