New Delhi- Investors’ wealth eroded by more than Rs 10.73 lakh crore in just two trading sessions as the market slumped and benchmark BSE Sensex slid 1,647.85 points.
For the second straight session on Friday, the 30-share Sensex tumbled 874.16 points or 1.45 per cent to settle at 59,330.90 points. During the day, the key index plunged 1,230.36 points or 2.04 per cent to 58,974.70 points.
On Wednesday, the BSE barometer plummeted 773.69 points or 1.27 per cent to 60,205.06 points.
The market capitalisation of BSE-listed firms eroded by Rs 10,73,957.29 crore to Rs 2,69,65,965.18 crore during these two trading days.
Stock markets were closed on Thursday on account of Republic Day.
Massive selling in the Adani group stocks also added to the overall bearish trend in the equity market.
Adani group stocks fell for the second straight session on Friday and tanked up to 20 per cent, losing over Rs 4.17 lakh crore from the combined market valuation of all its listed firms, after the US-based investment research firm Hindenburg Research made damaging allegations.
The sharp slump in the Indian market was triggered by an unfavourable research report on Adani group companies. This is also affecting the banking stocks, especially PSU banks due to their high exposure to the group, Vinod Nair, Head of Research at Geojit Financial Services, said.
According to him, FIIs’ cautious stance ahead of the Union Budget and FOMC (Federal Open Market Committee) meetings also fuelled the collapse.
On Friday, in the broader market, the BSE smallcap gauge tanked 1.89 per cent and midcap index fell by 1.29 per cent.
Among sectoral indices, utilities tanked 7.34 per cent, power tumbled 6.79 per cent, oil & gas (5.75 per cent), energy (5.22 per cent), telecommunication (3.79 per cent), commodities (3.27 per cent), bankex (3.06 per cent) and financial services (2.48 per cent).
FMCG, healthcare and auto ended in the green.
From the Sensex pack, State Bank of India, ICICI Bank, IndusInd Bank, Axis Bank, Kotak Mahindra Bank, Tech Mahindra, HDFC Bank and Reliance Industries were among the major laggards.
Bucking the trend, Tata Motors, ITC, Mahindra & Mahindra and NTPC closed with gains.
“The carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure. Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries,” Ajit Mishra, VP – Technical Research, Religare Broking Ltd, said. (PTI)
