Markets tank nearly 1% amid broad-based selling

Equity benchmark indices Sensex and Nifty resumed their downward journey to end nearly 1 per cent lower on Friday, wiping out nearly Rs 7 lakh crore from investors’ wealth, weighed down by widespread sell-off and the rupee hitting a record low against the US dollar.

Besides, investors rushing to safe-haven assets and unabated foreign capital outflows in the absence of domestic triggers dampened investor confidence, traders said. In a cautious trade, the 30-share BSE Sensex tumbled 769.67 points, or 0.94 per cent, to close at 81,537.70.

During the day, the index slumped 835.55 points, or 1.01 per cent, to hit an intraday low of 81,471.82. A total of 2,989 stocks declined, while 1,229 advanced, and 143 remain unchanged on the BSE. The 50-share NSE Nifty dived 241.25 points, or 0.95 per cent, to settle at 25,048.65. In the intraday session, it plunged 264.6 points, or 1.04 per cent, to hit a low of 25,025.30.

“Indian equity markets went on a sell-off mode despite an optimistic global market and supportive domestic PMI data. Sentiment weighed down on uptick crude oil prices, a sharp depreciation of the rupee to record lows, FIIs selling and earnings delivery falling marginally short of expectations amid premium India valuations,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

On a weekly basis, the BSE Sensex tumbled by 2,032.65 points, or 2.43 per cent. The broader NSE Nifty also slumped by 645.7 points, or 2.51 per cent. On Friday, the market capitalisation of BSE-listed firms plunged by Rs 6,95,963.98 crore to Rs 4,51,56,045.07 (USD 4.93 trillion).

This week, the market valuation of BSE-listed firms nosedived by Rs 16,28,561.85 crore. Despite a positive opening, deep losses in various heavyweight stocks, including Adani Group shares, intensified selling pressure.

Among the 30 Sensex constituents, Adani Ports, Eternal, IndiGo, Axis Bank, Bajaj Finserv, Power Grid, Bharat Electronics Ltd, State Bank of India, Maruti Suzuki India, Bajaj Finance, NTPC, Trent, Larsen & Toubro and Reliance Industries were the laggards.

On the other hand, Tech Mahindra, Hindustan Unilever, Infosys, Asian Paints, Tata Consultancy Services, Titan and UltraTech Cement were among the gainers. The BSE smallcap gauge slumped 2.19 per cent, while the midcap index fell 1.56 per cent.

All sectoral indices settled in the negative territory. Services dropped the most by 4.20 per cent, Utilities by 3.52 per cent, Realty by 3.35 per cent, Power by 2.81 per cent, PSU Bank by 2.37 per cent, Capital Goods by 2.09 per cent, Industrials by 1.69 per cent, and Bankex by 1.44 per cent.