“The likelihood of retaliatory measures against the US has further heightened uncertainty. US bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks,” Vinod Nair, head of research, Geojit Investments, said
New Delhi: Investors’ wealth dropped by Rs 10 lakh crore on Friday as the BSE Sensex slumped over 900 points to crash below the 76,000 level due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears.
Besides, heavy selling in market heavyweights Reliance Industries, Larsen & Toubro and Infosys and a sharp correction in global crude prices, indicating recessionary fears, added to the gloom, analysts said.
The 30-share BSE Sensex tumbled 930.67 points or 1.22 per cent to settle at 75,364.69. During the day, it plummeted 1,054.81 points or 1.38 per cent to hit an intraday low of 75,240.55.
Tracking the weak trend in equities, the market capitalisation of BSE-listed firms eroded by Rs 9,98,379.46 crore to Rs 4,03,34,886.46 crore (USD 4.73 trillion).
“The recent implementation of higher-than-anticipated US tariffs has had a significant impact on global markets, triggering a bearish trend as investors assess the broader implications.
“The likelihood of retaliatory measures against the US has further heightened uncertainty. US bond yields and oil prices are trending downward, reflecting concerns over potential economic slowdown and increased recessionary risks,” Vinod Nair, head of research, Geojit Investments, said.
Tata Steel was the biggest loser in the Sensex pack, sliding 8.59 per cent, followed by Tata Motors, Larsen & Toubro, Adani Ports, IndusInd Bank, and Reliance Industries. Besides, Tech Mahindra, Sun Pharmaceutical, HCL Technologies, Tata Consultancy Services, Infosys, and NTPC were the other major laggards.
On the other hand, Bajaj Finance, HDFC Bank, Nestle India, ICICI Bank, ITC, Asian Paints and Axis Bank were among the gainers.
As much as 2,820 stocks declined, 1,126 advanced and 130 remained unchanged on the BSE.
In broader markets, the BSE midcap gauge plunged 3.08 per cent, while smallcap index declined 3.43 per cent.
All the sectoral indices ended in negative territory. Metal plunged 6.34 per cent, followed by capital goods (3.99 per cent), oil & gas, commodities, and industrials (3.89 per cent each), energy (3.65 per cent), realty (3.61 per cent), and IT (3.55 per cent).