Investors’ wealth has tumbled by over Rs 18.17 lakh crore throughout six days of market decline, with sentiments remaining extraordinarily bearish amid price hikes by international central banks, unrelenting overseas fund outflows and soar in crude oil costs.
The 30-share BSE Sensex has tanked 3,959.86 factors or 7.15 per cent in six days of decline. It hit its one-year low of fifty,921.22 throughout the day on Friday.
The steady weak development in equities have dragged down the market capitalisation of BSE-listed companies by Rs 18,17,747.13 crore to Rs 2,36,77,816.08 crore throughout this time (June 9-June 17).
“Globally as well as domestically, equity markets saw carnage in the last couple of trading sessions as central banks across the world make aggressive rate hikes … Persistent FIIs selling and rising COVID cases have also dented sentiments,” stated Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
The BSE benchmark declined 135.37 factors or 0.26 per cent to settle at 51,360.42 on Friday.
“The dominant theme impacting equity markets globally is the synchronised global monetary tightening and the consequent fears of economic slowdown,” stated V Okay Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Titan fell essentially the most among the many Sensex companies on Friday, tanking 6.06 per cent, adopted by Wipro, Dr Reddy’s, Asian Paints, Sun Pharma, L&T and UltraTech Cement.
On the opposite hand, Bajaj Finance, Bajaj Finserv, ICICI Bank, Reliance Industries, ITC and HDFC Bank have been among the many gainers.
In the broader market, the BSE smallcap gauge declined by 0.88 per cent on Friday, whereas the midcap index dipped 0.68 per cent.
Among the BSE sectoral indices, oil and gasoline fell essentially the most by 3.07 per cent, adopted by client durables (2.68 per cent), power (1.86 per cent), healthcare (1.60 per cent), client discretionary items and companies (1.59 per cent) and utilities (1.57 per cent). Finance, financial institution, steel and realty ended within the inexperienced.
“Undertone of the market continue to remain bearish with weak global cues dampening investors’ sentiment. Investors are trading with caution after the aggressive rate hike by the US Fed. Moreover, FII selling is showing no signs of easing, which continues to have a bearing on the markets,” Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd, stated.
Foreign institutional traders (FIIs) remained web sellers within the capital market, as they bought shares value Rs 3,257.65 crore on Thursday, as per the trade knowledge.
Source: www.financialexpress.com”