Benchmark indices started the trade on a positive note, but the selling intensified during afternoon trade, with all sectoral indices ending in the red.
Published Date – 13 March 2024, 06:44 PM
New Delhi: Dalal Street investors became poorer by Rs 13.47 lakh crore in a single day on Wednesday amid heavy selling in the equity market, where the BSE benchmark Sensex tumbled over 900 points.
A sharp fall in small cap and midcap indices played spoilsport for the markets.
The 30-share BSE benchmark tanked 906.07 points or 1.23 per cent to settle at 72,761.89. During the day, it plummeted 1,152.25 points or 1.56 per cent to 72,515.71.
The market capitalisation (mcap) of BSE-listed companies eroded by Rs 13,47,822.84 crore to Rs 3,72,16,602.67 crore.
“Markets erased early gains and slipped into the negative zone with frenzied selling towards the end dragging benchmark Nifty below the 22k mark. There have been concerns over the rising valuations of mid and small-rung stocks for a while, and with the regulator too asking to maintain caution, traders preferred to trim their exposure which resulted in a massive correction across the board,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Benchmark indices started the trade on a positive note, but the selling intensified during afternoon trade, with all sectoral indices ending in the red.
In the broader market, the BSE smallcap gauge tanked by 5.11 per cent, while the midcap index declined by 4.20 per cent.
Power Grid was the biggest loser in the Sensex pack, dropping over 7 per cent, followed by NTPC, Tata Steel, Tata Motors, Titan, JSW Steel, Bharti Airtel, Reliance Industries and Hindustan Unilever.
In contrast, ITC, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance and HDFC Bank were the gainers.
All the indices ended in the red, with utilities tumbling 7.21 per cent, metal dropping by 5.75 per cent, services (5.71 per cent), telecommunication (5.45 per cent), oil & gas (5.16 per cent), commodities (4.28 per cent) and industrials (4.23 per cent).
A total of 3,516 stocks declined while 400 advanced and 60 remained unchanged.
“In contrast to the global uptrend, unfavourable risk-reward balance of mid and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall. Meanwhile, FMCG and contrarian plays like gold are offering some refuge. Other than the premium valuation no fundamental issue is noticed to drawback the long-term growth image of domestic midcaps,” Vinod Nair, Head of Research, Geojit Financial Services, said.
