Investors Lose Nearly Rs 3 Lakh Crore As Sensex Clocks Worst Fall In 11 Months
Pedestrians holding umbrellas walk past an electronic ticker board displaying stock figures at the Bombay Stock Exchange in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Investors Lose Nearly Rs 3 Lakh Crore As Sensex Clocks Worst Fall In 11 Months

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Closing Bell: Investors Lose Nearly Rs 3 Lakh Crore As Sensex Clocks Worst Fall In 11 Months

Indian equity investors lost around Rs 2.8 lakh crore of wealth today, according to data available with Bombay Stock Exchange.

That came after Indian equity benchmark—S&P BSE Sensex clocked its worst fall since October 2018. The 31-share index closed 2.06 percent or 770 points lower at 36,562.91.

The NSE Nifty 50 closed 2.04 percent lower at 10,797.90. The broader markets represented by the NSE Nifty 500 Index ended 1.95 percent lower.

Investors Lose Nearly Rs 3 Lakh Crore As Sensex Clocks Worst Fall In 11 Months

The benchmark Nifty 50 is likely to fall 10 percent over the next three months to 9,500-10,000 levels, according to Marcellus Investment Managers’ Founder Saurabh Mukherjea.

“We expect the market to correct further towards a ‘fair valuation’. However, that does not give a reason to sound alarm bells as there are still opportunities for investors to make money every month,” Mukherjea told BloombergQuint in an interaction.

The decline in the markets are due to the ‘structural’ issues in the macro environment, followed by the weak auto numbers, according to G Chokkalingam, founder of Equinomics Research & Advisory.

“The damage done to the broader markets is enormous and one cannot expect further correction from this level,” Chokkalingam told BloombergQuint in an interaction. He suggests investors to invest in a phased manner in the next two-to-three months and expects markets to improve in the next six months.

The market breadth was tilted in favour of sellers. About 1,199 stocks declined and 569 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 4.87 percent fall.

MCX Drops The Most In Nearly A Year

Shares of Multi Commodity Exchange fell as much as 12.8 percent, the most since October 2018, to Rs 852.35.

“The company is dealing with the anonymous whistle blower-complaint in a legal manner and will file a response to the market regulator— Securities and Exchange Board of India,” its Managing Director and Chief Executive Officer PS Reddy told BloombergQuint in an interaction.

Trading volume was more than five times its 20-day average, Bloomberg data showed.

Fab Four Stocks Of The Day

Tanla Solutions

  • Stock rose as much as 4.9 percent to Rs 52.70.
  • The company plans to acquire automation platform company Gamooga Softtech for Rs 48.45 crore
  • The board plans to raise capital via preferential issue on Sept. 5

Titagarh Wagons

  • Stock rose as much as 5.7 percent to Rs 39.70.
  • The company launched coastal research vessel for the government.

HDFC AMC

  • Stock rose as much as 5.8 percent to Rs 2,699.
  • Trading volume was double its 20-day average.

JK Tyre & Industries

  • Stock rose as much as 7 percent to Rs 62.50.
  • This after the pledge release of 20.71 percent equity for KKR Capital.

Market Check: Sensex, Nifty Set For Worst Fall In Nearly Two Months

Indian equity benchmarks are set for their worst fall in nearly two months.

The S&P BSE Sensex fell over 700 points or 1.88 percent to 36,637 as of 3 p.m. and the NSE Nifty 50 fell 1.86 percent to 10,817.40. The broader markets represented by the NSE Nifty 500 Index fell 1.78 percent.

The market breadth was tilted in favour of sellers. About 1,216 stocks declined and 536 shares advanced on National Stock Exchange.

Government Increases Ethanol Prices By Rs 1.84 Per Litre

The government today increased the prices of ethanol by as much as 1.84 a litre.

Highlights from cabinet briefing:

  • Government revises ethanol price for blending with gasoline, aims to save $1 billion oil import via ethanol blending.
  • Government approves mechanism revision of ethanol prices for oil marketing companies.
  • Centre to revise ethanol prices every year.
  • Government to allow ethanol production from sugar syrup, cane.

Source: Bloomberg

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