Over ₹4 lakh crore of investors’ wealth eroded as sensex tumbles 1021 points

As the Indian stock market’s key indices, Sensex and Nifty, slumped by nearly two percent on Friday, over 4 lakh crore of the investors’ wealth eroded. The wealth worth crores eroded amid weak global cues after the US Federal Reserve signaled an aggressive increase in interest rate to control inflation.

The 30 stock S&P BSE Sensex slumped 1020.80 points or 1.73 percent to 58,098.92 points as against the previous day’s close at 59,119.72 points.

On Friday, the Sensex started in the red at 59,005.18 points and slumped to 57,981.95 points. This was the fourth consecutive day that markets saw losses as the Sensex slumped. On Thursday, the Sensex dropped by 337.06 points or 0.57 percent.

The broader Nifty 50 of the National Stock Exchange crashed 302.45 points or 1.72 percent to 17,327.35 points against its previous day’s close at 17,629.80 points. The Nifty lost 88.55 points or 0.5 percent on Thursday.

As the Sensex and Nifty dipped, the selling pressure in the market resulted in an erosion of excess 4 lakh crore in investors’ wealth.

Not just India, the stock markets have slumped across the world after the US Federal Reserve, on September 21, announced a 75 basis point increase in the policy interest rate.

As Senxes and Nifty slumped, the banking stocks also witnessed a heavy selling pressure.

While State Bank of India (SBI) tumbled 2.99 percent to 550.45, HDFC Bank slumped 2.64 percent to 1446.50. In fact, all major banks including Axis Bank, IndusInd Bank, Kotak Bank and ICICI Bank closed with huge losses.

Power Grid Corporation dropped 7.93 percent to 202.60 and Mahindra & Mahindra crashed 3 percent to 1271.30.

Heavyweight Reliance Industries Limited collapsed 1.87 percent to 2439.35. Bajaj Finserv, Bajaj Finance, NTPC, HDFC, Titan, Bharti Airtel and UltraTech Cement were among the major Sensex losers.

Only three out of the 30 scrips that are part of the benchmark Sensex closed in the positive. Sun Pharma jumped 1.53 percent to 920.80. ITC climbed to 0.33 percent 346.25.

The share price of Tata Steel rallied while subsidiaries slumped by upto 9 percent on Friday after the company’s board approved the amalgamation of seven group companies.

On the BSE, Tata Steel closed at 0.58 percent higher 104.25. The scrip surged to a high of 107.90 in the intra-day.

Out of the seven Tata Group companies that would get merged with Tata Steel, four are listed. All these four companies were trading with heavy losses.

Tata Steel Long Products Limited slumped to 8.73 percent 683.50. The scrip hit a low of 679.65 in the intra-day.

Mahindra & Mahindra Financial Services Limited crashed by more than 14 percent a day after the Reserve Bank of India (RBI) barred it from using third-party recovery agents.

On the BSE, the share of Mahindra & Mahindra Financial Services Limited was trading 11.42 percent down at 198.20. The scrip crashed to a low of 192.05 in the intra-day against its previous day’s close at 223.75.

The Reserve Bank of India on Thursday announced that it has directed Mahindra & Mahindra Financial Services Ltd (MMFSL) to “immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, until further orders.”

However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees, the RBI said.

(With agency inputs)

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