Investor riches saw an erosion of Rs 2.68 lakh crore on Friday hauled down by massive selling in the stock market at which the BSE benchmark index tumbled 448 points.
Following intense weakness in stocks, the market capitalization of BSE-listed companies slumped Rs 2,68,853.7 crore to Rs 1,33,40,008 crore. The 30-share index depended lower by 447.60 points, or 1.38 percent — its biggest single-day fall since November 15 final year — in 31,922.44. The loss was the biggest in nearly ten months.
Tata Steel has been the top Sensex loser, skidding 4.70 percent to close at Rs 654.55, followed closely by L&T, which fell 3.49 percent.
BSE realty melted the most by 4.29 percent. Metal, capital products, and power too added to this weakness.
On BSE, 2,139 stocks declined, while 484 progressed and 138 remained unchanged.
“The markets watched a sell-off of over 1 percent which in our opinion is due to poor global cues which in turn were due to geopolitical tensions surrounding North Korea. The sell-off was more pronounced as FIIs continued to pull out funds in a reaction to the political tensions and current revision of China’s sovereign rating,” said Natasha Shankar, Sr Vice President and Head of Research, YES Securities.
“The market correction has been on account of extraneous event viz, the geopolitical tension in the Korean peninsula. History informs us that such occasions invite sharp reactions from equity markets and the pessimism is short-lived; time and again the markets have bounced back with new vigour,” said Arun Thukral, MD & CEO, Axis Securities.