Bears Tighten Grip On Mkts On FII Outflows
Friday Fury: Sensex, Nifty tank 1.5% as markets in red for 5th session; Global markets turn sluggish as slower easing forecast by US Fed sends US equities markets tumbling
Bears Tighten Grip On Mkts On FII Outflows
Mumbai: Equity benchmark indices Sensex and Nifty plunged about 1.5 per cent on Friday, taking their downtrend to the fifth straight session, due to risk aversion in the global markets after the hawkish stance of the US Federal Reserve. An across-the-board selloff in equity markets amid unabated selling by foreign investors added to the pressure, traders said.
The 30-share BSE benchmark tumbled 1,176.46 points or 1.49 per cent to sink below the 79,000 mark to end at 78,041.59. During the day, it slumped 1,343.46 points or 1.69 per cent to 77,874.59. The NSE Nifty tanked 364.20 points or 1.52 per cent to 23,587.50. As many as 2,950 stocks declined, while 1,045 advanced and 90 remained unchanged on the BSE. Investors became poorer by Rs8.77 lakh crore in a single session on Friday as the market capitalisation (mcap) of BSE-listed firms eroded by Rs18.43 lakh crore in five days of the market crash to Rs4,40,99,217.32 crore ($5.18 trillion).
“Disappointment regarding the slower-than-anticipated rate cuts by the US Fed has adversely affected global market sentiment. This bearish outlook is particularly impacting the domestic market, which is already contending with high valuations & low earnings growth. The sell-off has been widespread, with significant declines in mid and small-cap stocks, where valuations premiumisation is at a historical peak,” said Vinod Nair, Head (Research), Geojit Financial Services.
In the past five days, the BSE benchmark tanked 4,091.53 points or 4.98 per cent, and the Nifty slumped 1,180.8 points or 4.76 per cent.
“Markets experienced a sharp decline on Friday, shedding nearly one and a half per cent as the corrective phase persisted. After a choppy start, the Nifty index steadily weakened throughout the day,” Ajit Mishra, Sr V-P (Research), Religare Broking Ltd. All the sectoral indices ended in negative territory. From the 30 blue-chip Sensex pack, Tech Mahindra, IndusInd Bank, Axis Bank, Mahindra & Mahindra, Tata Motors, Larsen & Toubro, State Bank of India, Tata Consultancy Services, UltraTech Cement and Reliance Industries were the biggest laggards.
Investors poorer by Rs 8.77 lakh cr
Rs8.77 lakh crore worth investors’ wealth was eroded in a single session on Friday, while the market capitalisation (mcap) of BSE-listed firms eroded by Rs18.43 lakh crore in five days of the market crash to Rs4,40,99,217.32 crore (Rs440.99 lakh cr or $5.18 trn)
