Investors lose Rs 1.2 lakh crore as Sensex falls for 8th day
Investors in Indian stock markets lost more than Rs 1.2 lakh crore as the benchmark BSE Sensex lost 986 points, or 4.9%, over eight straight trading days starting Wednesday, July 24. HT reports.business Updated: Aug 03, 2013 01:42 IST
Investors in Indian stock markets lost more than Rs 1.2 lakh crore as the benchmark BSE Sensex lost 986 points, or 4.9%, over eight straight trading days starting Wednesday, July 24. The 30 Sensex shares collectively lost about Rs 80,000 crore in notional value in this period.
The government’s announcement of easier norms for FDI in multi-brand retail, which was widely welcomed by industry, failed to lift stocks on Friday as a falling rupee, which closed at a record low of 61.11 against the dollar, spooked investors and led to heavy selling. The Sensex ended the day 153 points, or 0.79%, lower.
Even reports that Morgan Stanley was ‘overweight’ on India because other emerging markets were even more stressed failed to revive sentiment as a Goldman Sachs report that had downgraded Indian stocks to ‘underweight’ on Thursday, the impact of the rupee, sustained selling by foreign institutional investors and weak results by some major companies took their toll.
“There is a risk aversion in the markets. People want companies with high quality balance sheets and no debt. There is fear of a rise in interest rates,” said Rakesh Tarway, vice-president, equities, Motilal Oswal.
But experts said it will still possible to find stocks in the pharma, IT and FMCG sectors that could give good returns but advised investors to be very selective while investing. They also advised small investors to stay away from the market for the time being.
Of the 30 Sensex shares, as many as 24 declined on Friday. TCS, Reliance Industries, Infosys, Wipro, Tata Motors and Bharti Airtel were the only Sensex shares to gain.
The broad-based National Stock Exchange index Nifty fell 49.95 points, or 0.87% to 5,677.90.
Public sector banks continued to fall on fears over non-performing assets, while metal stocks, led by Jindal Steel, lost ground on reports of slowing economic growth in China. Jindal Steel fell 7.29% to Rs 186.90 and Sterlite Industries by 3.92% to Rs 72.30.
Power Grid Corporation crashed 11.56% to Rs 91.05 after saying it would sell new shares to raise funds.
For the second day running, Financial Technologies plunged, this time by 21.12% and MCX by 20% amid troubles at National Spot Exchange Ltd.