Sensex Plunge: Rs 3.4L cr Investor Wealth Lost; HDFC Bank, IEX, Zomato Drop Up to 7%

Today, 15 stocks, including BSE-listed Radiant Cash Management Services and Sanmit Infra, touched their 52-week lows. In contrast, 223 stocks reached their one-year high levels on the same day.

HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, SBI, Tata Steel, M&M, and Bajaj Finance, played a significant role in today’s market decline.

1. Sharp Decline in Indices: BSE Sensex witnessed a substantial drop of over 1,400 points, and NSE Nifty fell below the 21,650 level.
2. Market Cap Erosion: The significant downturn resulted in the wiping out of approximately Rs 3.4 lakh crore from the BSE market capitalization.
3. Continued Weakness: The domestic benchmarks experienced a second consecutive session of decline, influenced by subdued global market indicators.

In Wednesday’s trading session, Indian equity markets experienced a significant decline, driven by losses in banks, financials, and metal stocks. The BSE Sensex plummeted over 1,400 points, while the NSE Nifty dipped below the 21,650 level. The 30-stock Sensex closed down 1,402 points (1.8%) at 71,719.81, and the Nifty was down 400 points (1.8%) at 21,632.10. This downturn resulted in a substantial loss of around Rs 3.4 lakh crore in BSE market capitalization. The market decline continued for the second consecutive session, influenced by weak global cues.

Asian markets experienced a decline following the release of China’s economic growth figures for the December quarter, which fell short of expectations. Additionally, Wall Street closed lower in the previous session, influenced by comments from a key Federal Reserve official who suggested that the US central bank should not hastily lower interest rates.

In today’s market downturn, the following figures capture the extent of the decline:

1. Investor Wealth Loss: Investor wealth, measured by BSE market capitalization, witnessed a decline of Rs 3.38 lakh crore, falling from Rs 374.95 lakh crore in the previous session to Rs 371.57 lakh crore.
2. Frontline Stock Impact: Leading stocks like HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, SBI, Tata Steel, M&M, and Bajaj Finance played a significant role in today’s market fall.

Key points from today’s market activity:

1. 52-Week Lows: 15 stocks hit their 52-week lows on BSE, including Radiant Cash Management Services and Sanmit Infra.
2. 52-Week Highs: On the positive side, 223 stocks reached their one-year high levels.
3. Market Decline: Out of 3,713 stocks, 2,190 saw declines, while 1,391 advanced. A total of 132 stocks remained unchanged.
4. Top Losers: Shares of HDFC Bank, Indian Energy Exchange (IEX), Zomato, Lodha, Prestige, SAIL, Finolex Industries, Alembic Pharma, and Vedant Fashions experienced declines of up to 7.01%.

In the recent market downturn:

1. Top Drags on Sensex: Major contributors to the decline in Sensex included HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, SBI, Tata Steel, M&M, and Bajaj Finance. Notably, HDFC Bank, ICICI Bank, and Kotak Bank alone were responsible for a negative contribution of 882 points.
2. NSE Sub-Indices: On NSE, 12 out of 15 sub-indices experienced declines. Notably, Nifty Bank, Nifty Financial Services, and Nifty Metal witnessed sharp falls, reflecting the challenges faced by banks, financials, and metal sectors in the current market scenario.

Here’s a snapshot of the FII-DII data and global market trends:

1. FII-DII Activity: Foreign institutional investors (FIIs) bought shares worth Rs 656.57 crore on a net basis during the previous session. In contrast, domestic institutional investors (DIIs) sold shares worth Rs 369.29 crore, according to stock exchange data.
2. Global Market Trends:
   • Asian Markets: South Korea’s Kospi index declined by 2.25%, Hong Kong’s Hang Seng witnessed a significant fall of 3.05%, and the Shanghai Composite index slipped by 0.98%.
   • Japan: Japan’s Nikkei index remained flat amidst the broader declines in the Asian markets.

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