Sensex falls 600 points: Why is stock market down today?

Dalal Street is struggling to hold on to gains on Friday, with benchmark indices reversing an initially strong start as rising crude oil prices and broad-based selling weigh on investor sentiment.The Sensex, which opened more than 400 points higher, has since fallen nearly 1,100 points from the day's high, while the Nifty has slipped below the 22,500 mark.The BSE Sensex was trading at 72,651.10, down 598.29 points, or 0.82%, around 12.02 pm. The index had opened at 73,665.64 and touched an intraday high of 73,766.51 before reversing course. This puts it around 1,115 points below its day's high.The NSE Nifty 50 fell 248 points, or 1.09%, to 22,439.65. The index had touched a high of 22,787.25 earlier in the session. The decline comes as Brent crude futures rose 1.21% to $114.54 per barrel, while US West Texas Intermediate crude gained 1.40% to $100.86. Elevated oil prices remain a key concern for India, which imports most of its crude requirements.A prolonged rise in oil prices could increase the import bill, add to inflationary pressure and squeeze corporate margins. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the surge in crude prices remained a major negative for the economy and markets. However, he pointed to other factors that could support equities, including a decline in US bond yields, a stronger rupee and the return of funds tied up in the Jio Platforms IPO after allotment.METAL, REALTY AND CONSUMER STOCKS LEAD LOSSESSelling has spread across the market, with metal, real estate and consumer durable stocks among the biggest drags. The Nifty Metal index fell 3.39%, while the Nifty Realty index declined 3.16%. The Nifty Consumer Durables index dropped 3.37% and the Nifty Chemicals index fell 2.85%.Auto stocks were also under pressure, with the Nifty Auto index down 1.90%. The Nifty FMCG index slipped 2.09%, while the Nifty Financial Services 25/50 index fell 1.58%.The Nifty IT index was a rare exception, holding marginally higher by 0.08%. The Nifty 100 fell 1.49%, the Nifty 200 declined 1.74% and the Nifty 500 dropped 1.94%.The correction was sharper in the broader market. The Nifty Midcap 50 fell 2.68%, the Nifty Midcap 100 declined 2.75%, and the Nifty Smallcap 100 plunged 3.42%. India VIX, a measure of expected market volatility, rose 6.97% to 16.86, indicating heightened uncertainty.JIO PLATFORMS IPO DRAWS STRONG DEMANDThe market decline comes even as investor interest in the country's largest-ever public issue remains strong. The Rs 30,213-crore Jio Platforms IPO, backed by billionaire Mukesh Ambani, was subscribed 6.98 times by 12.04 pm on Friday, the third and final day of bidding.The retail portion was subscribed 2.08 times, the qualified institutional buyer category 14.60 times and the non-institutional investor segment 9.52 times, according to the subscription figures available at the time.The IPO is being closely watched as a test of investor appetite for a large listing amid scrutiny of global technology and AI-linked valuations. However, strong demand for the issue has not been enough to prevent a broader sell-off in equities.Vijayakumar said more than Rs 3 lakh crore of the money invested in the IPO could return to the system after allotment is completed by next Monday, potentially providing a liquidity boost to the market in the coming week.He added that any recovery would likely be led by large-cap stocks, which have shown greater resilience, while the correction in the broader market, particularly small-caps, could continue because of valuations that have been driven more by liquidity than fundamentals.For now, the market faces competing forces: elevated crude prices and widespread selling are weighing on sentiment, while strong IPO demand and the prospect of funds returning to the system could offer some support in the coming sessions.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends