Market plunges; Nifty below 10k mark

Benchmark indices BSE Sensex and NSE Nifty plunged on Friday on intense selling from foreign investors. Lack of support from domestic investors was conspicuous by its absence. The 30-share BSE Sensex suffered a massive loss of 447.60 point or 1.38 per cent to end the day at 31,922.44 points. Broader NSE Nifty declined 157.50 points or 1.56 per cent to settle below 10,000 level at 9,964.40.

Investor wealth saw an erosion of Rs 2.68 lakh crore today following intense selling. Market capitalisation of BSE-listed companies slumped by Rs 2,68,853.7 crore to Rs 1,33,40,008 crore on Friday’s close. Investors were concerned that the fiscal deficit target is likely to be breached in case government announces an economic stimulus package. Broker said the recent domestic economic data is not looking promising for investor sentiment in the near term, given current historical peak valuation.

Vinod Nair, head of Research, Geojit Financial Services said, “This week market hit a new all time high of 10,179 (previous high was 10,138), led by positive global cues. However, volatility emerged as investors were cautious due to Fed policy, continued geo-political issues, lack of earnings growth and peak valuation. Nifty continue to face resistance at higher levels and lacked decisiveness for any up-move.”

“Markets are concerned on fall in GDP growth, rise in crude prices, CPI inflation inching higher and lack of pick-up in private investments. Further, lack of comprehensive steps on NPA resolution and recapitalisation of PSU banks continued to impact the sector, PSU banks were down by 4 per cent for the week. While Pharma sector outperformed the key benchmark indices, gaining by 1.4 per cent showing some signs of revival, Nair said.

As per the provisional stock exchange data, foreign portfolio investors were net sellers by Rs 1241.73 crore while the domestic institutional investors were net buyers by only Rs 521.17 crore.

No revision in trading hours: The NSE has clarified that it has not revised the trading hours, after it received alerts that a circular was doing the rounds saying the bourse has extended the timings for closing session. “The exchange has not issued any circular for revision of the market timings for closing session,” NSE said.