Angel One, BSE, and Other Capital Market Stocks Drop Up to 10%

Angel One, BSE, MCX, and other capital market-focused stocks continued their losing streak for the sixth consecutive session on Monday, as broader markets remained in a downtrend. Investor sentiment took a hit due to fresh tariff threats that reignited fears of a global trade war, coupled with persistent foreign fund outflows.

Since reaching its all-time high of 85,978.25 on September 27 last year, the BSE benchmark index has declined by 12,780.15 points, marking a 14.86% drop. Similarly, the Nifty has plunged 4,152.65 points or 15.80% from its record peak of 26,277.35, recorded on September 27, 2024. The market capitalization of BSE-listed firms has seen a substantial erosion of ₹93.91 lakh crore from its record high of ₹4,77,93,022.68 crore in September last year.

Investor concerns have intensified following Trump’s announcement of import levies on multiple nations. "Additionally, worries over slowing economic growth, earnings falling short of expectations, and persistent foreign investor sell-offs have been fueling bearish trends at regular intervals," said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

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Market Reactions and Sector-Wide Impact

The ongoing market downturn has significantly impacted investor confidence, with several key sectors experiencing heavy sell-offs. Financial services, brokerage firms, and asset management companies have been among the worst hit.

Angel One share price plunged to an intraday low of ₹1,952.25 on the NSE, down 10%. The stock has been on a six-day losing streak, shedding nearly 17% over this period. BSE share price fell 5.66% to hit a day's low of ₹4,371 per share, while MCX share price declined 5.31%, touching an intraday low of ₹4,726.55. The stock has been sliding for the past six sessions, losing 16.31% in total.

Meanwhile, (Central Depository Services Limited’s) CDSL share price dropped 2.69% to ₹1,078. Other financial stocks also faced selling pressure, with Motilal Oswal Financial Services’ share price declining over 2%. Shares of Aditya Birla Sun Life AMC and CAMS were also trading in the red.

Foreign Fund Outflows and Economic Uncertainty

A key factor contributing to the bearish market sentiment is the sustained outflow of foreign institutional investments. Market analysts point to global uncertainties, including geopolitical tensions and inflationary pressures, as major triggers for the sell-off. Foreign investors have been pulling out funds from emerging markets like India due to rising US bond yields and concerns over economic stability.

"Foreign investor participation has been weak in the last few weeks, as they continue to move funds towards safer assets amid global volatility," said a market expert. "With interest rates in the US remaining high, equity markets in emerging economies are feeling the pressure."

In addition to global cues, domestic factors such as weak corporate earnings and fears of a slowdown in consumption are also weighing on the markets. Investors are closely watching key economic indicators, including GDP growth, inflation data, and corporate performance, to assess future market direction.

Outlook for the Coming Weeks

With the market experiencing continuous volatility, experts suggest a cautious approach for investors. While valuations of several stocks have become more attractive after the correction, analysts advise waiting for stability before making fresh investments.

"The market is currently in a corrective phase, and while there could be short-term rebounds, a sustained recovery will depend on multiple factors, including global economic stability, domestic earnings growth, and foreign investor sentiment," said a senior research analyst.

Despite the ongoing sell-off, some experts believe that long-term investors can find opportunities in fundamentally strong companies. Sectors such as technology, pharmaceuticals, and renewable energy may present better resilience compared to financial services and capital market-oriented stocks.

Overall, the Indian stock market remains under pressure, with investors remaining cautious amid global and domestic headwinds. The coming weeks will be crucial in determining whether the correction deepens further or if stability returns to the broader market.