Investors Lose Rs 3 Lakh Crore As Sensex, Nifty Log Worst Fall In Four Months
Closing Bell: Investors Lose Rs 3 Lakh Crore As Sensex, Nifty Log Worst Fall In Four Months
Indian equity investors lost around Rs 3 lakh crore of wealth today, according to data available with Bombay Stock Exchange.
That came after India’s equity benchmark—S&P BSE Sensex clocked its worst fall since Sept. 3, 2019. The 30-share index closed 1.9 percent or 788 points lower at 40,676.63.
The NSE Nifty 50 closed 1.91 percent lower to end below 12,000. The broader markets represented by the NSE Nifty 500 Index ended 1.95 percent lower.
The vertical decline is greater than what we had anticipated, said Ajit Mishra, vice president and senior technical analyst, Equity Research, Religare Broking.
“One should wait for a technical rebound for the near term considering the current scenario. In such a case, I recommend going short around 12,100 levels with 12,200 as the resistance for stop loss while 11,850 is the target area.”
The market breadth was tilted in favour of sellers. About 1,449 stocks declined and 379 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 4.3 percent fall.
Market Commentary: Current Rally In Crude Unlikely To Sustain, Chakri Lokapriya Says
It is highly unlikely that the current rally in crude prices will sustain and hence it will not have any impact on India’s fiscal situation being an oil importer, Chakri Lokapriya of TCG Asset Management Company said.
“The banking NPA resolution is the key thing for recovery of Indian economic recovery. If the same happens, we can see a 10 percent rise in the large-cap index from the current levels,” Lokapriya told BloombergQuint.
Market Commentary: No Further Fall Expected, Says Deven Choksey
The fall in the market is related to the nervousness among investors regarding global war threat, according to Deven Choksey of KRChoksey.
“We do not expect the fall to sustain unless there is a massive disruption seen globally,” Choksey told BloombergQuint in an interaction.
Commenting on crude oil prices, he said that they are highly unlikely to sustain at current high levels as the Iranian crude was already in sanction. “As the situation normalises, which is likely to happen, the panic situation will ease out,” Choksey added.
Fab Four Stocks Of The Day
- Stock rose as much as 11.2 percent to Rs 1,218.
- December domestic sales up 53 percent year-on-year to 2,517 units.
Indian Overseas Bank
- Stock rose as much as 9.5 percent to Rs 12.15
- Government infused Rs 4,360 crore capital
- Stock rose as much a 2 percent to Rs 831.80.
- Fresh longs seen with high open interest of 18 percent.
Dishman Carbogen Amcis
- Stock locked in 5 percent upper circuit.
- Board to consider share buyback on Jan. 16.
True North To Invest Rs 536 Crore In Biocon Biologics
Biocon today said in an exchange notification that True North will be investing Rs 536.25 crore in Biocon Biologics for 2.44 percent stake, valuing the company’s subsidiary at Rs 21,450 crore or about $3 billion on a ‘pre-money equity basis’.
Shares of Biocon fell as much as 5.3 percent to Rs 285.05.
Nifty Bank Falls 900 Points, Trades Below 50-DMA
The NSE Nifty Bank Index fell nearly 900 points to trade below its 50-day moving average.