Over ₹4 lakh crore of investors' wealth eroded as sensex tumbles 1021 points
PremiumThe investors' wealth worth ₹4 lakh crore was eroded as the Indian stock market's key indices, Sensex and Nifty, slumped by nearly two per cent on Friday
As the Indian stock market's key indices, Sensex and Nifty, slumped by nearly two per cent on Friday, over ₹4 lakh crore of the investors' wealth eroded. The wealth worth crores eroded amid weak global cues after the US Federal Reserve signalled an aggressive increase in interest rate to control inflation.
The 30 stock S&P BSE Sensex slumped 1020.80 points or 1.73 per cent to 58,098.92 points as against the previous day's close at 59,119.72 points.
On Friday, the Sensex started in the red at 59,005.18 points and slumped to 57,981.95 points. This was the fourth consecutive day that markets saw losses as Sensex slumped. On Thursday, the Sensex had dropped by 337.06 points or 0.57 per cent.
The broader Nifty 50 of the National Stock Exchange crashed 302.45 points or 1.72 per cent to 17,327.35 points against its previous day's close at 17,629.80 points. The Nifty had lost 88.55 points or 0.5 per cent on Thursday.
As the Sensex and Nifty dipped, the selling pressure in the market resulted in an erosion of over ₹4 lakh crore in investors' wealth.
Not just India, the stock markets have slumped across the world after the US Federal Reserve, on 21 September, announced 75 basis points increase in policy interest rate.
As Senxes and Nifty slumped, the banking stocks also witnessed a heavy selling pressure.
While State Bank of India (SBI) tumbled 2.99 per cent to ₹550.45, HDFC Bank slumped 2.64 per cent to ₹1446.50. In fact, all major banks including Axis Bank, IndusInd Bank, Kotak Bank and ICICI Bank closed with huge losses.
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Power Grid Corporation dropped 7.93 per cent to ₹202.60 and Mahindra & Mahindra crashed 3 per cent to ₹1271.30.
Heavyweight Reliance Industries Limited collapsed 1.87 per cent to ₹2439.35. Bajaj Finserv, Bajaj Finance, NTPC, HDFC, Titan, Bharti Airtel and UltraTech Cement were among the major Sensex losers.
Only three out of the 30 scrips that are part of the benchmark Sensex closed in the positive. Sun Pharma jumped 1.53 per cent to ₹920.80. ITC climbed 0.33 per cent to ₹346.25.
The share price of Tata Steel rallied while subsidiaries slumped by upto 9 per cent on Friday after the company's board approved the amalgamation of seven group companies.
On the BSE, Tata Steel closed 0.58 per cent higher at ₹104.25. The scrip surged to a high of ₹107.90 in the intra-day.
Out of the seven Tata Group companies that would get merged with Tata Steel, four are listed. All these four companies were trading with heavy losses.
Tata Steel Long Products Limited slumped 8.73 per cent to ₹683.50. The scrip hit a low of ₹679.65 in the intra-day.
Mahindra & Mahindra Financial Services Limited crashed by more than 14 per cent a day after the Reserve Bank of India (RBI) barred it from using third-party recovery agents.
On the BSE, the share of Mahindra & Mahindra Financial Services Limited was trading 11.42 per cent down at ₹198.20. The scrip crashed to a low of ₹192.05 in the intra-day against its previous day's close at ₹223.75.
The Reserve Bank of India on Thursday announced that it has directed Mahindra & Mahindra Financial Services Ltd (MMFSL) to "immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders."
However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees, the RBI said.
(With agency inputs)
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