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Investors' stock market wealth eroded by Rs 275,000 crore on Tuesday after the Sensex recorded its sharpest single-day fall past 16-months in percentage terms amid a sell-off in global stocks triggered by sharp slide in global crude oil prices.
The S&P BSE Sensex tumbled 3% or 855 points, to settle at 26,987, its biggest single-day fall since September 3, 2013, when the index plunged 3.5% or 651 points. CNX Nifty too, plunged 3% or 251 points to settle at 8,127.
In absolute terms, on July 6, 2009, the S&P BSE Sensex had tanked 870 points or 5.8%, while CNX Nifty slipped 259 points or 5.8%.
The total investor wealth, measured in terms of cumulative market value of all listed companies, plummeted by Rs 275,014 crore and stood at Rs 96,74,705 crore at the end of today's trade.
Of this, nearly half or Rs 135,229 crore was wiped off from the BSE Sensex stocks that include blue chips like Tata Consultancy Services (TCS), Oil and Natural Gas Corporation (ONGC), , Reliance Industries, State Bank of India (SBI), ICICI Bank and Housing Development Finance Corporation (HDFC).
Of the 30 Sensex shares, market capitalisation of twenty-four stocks declined by more than Rs 1,000 crore each.
Hindustan Unilever, the sole gainer among Sensex stocks, gained nearly 2% to Rs 775 on BSE after reports that a foreign investment bank upgraded the stock to buy from hold and also raised its target price for the stock.
Among the individual stocks, TCS was the biggest loser, whose m-cap eroded of Rs 17,893 crore in a single day. ONGC and Reliance Industries saw m-cap erosion of Rs 17,795 crore and Rs 13,264 crore, respectively. SBI, ICICI Bank, HDFC, ITC and Tata Motors reported m-cap erosion between Rs 5,000-Rs 10,000 crore each.
“The sharp fall in markets came as a surprise and was likely driven by the weak global markets. There are concerns about the weakness in the global economy (crude prices have been falling sharply) as well as the after –effects of a potential exit of Greece from EU. The sustained fall in crude prices is positive from the Indian economy’s point of view, though, said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
In the near term, mixed set of quarterly numbers and global volatility are likely to restrict significant gains in markets. Government’s action on getting reforms on track (within or outside the budget), as well as potential decline in interest rates are the likely triggers for a further re-rating in the medium-to-long term, adds Shah.
Shares of oil and gas companies were the worst hit as global crude oil prices tumbled on Monday, January 5, 2015. S&P BSE Oil and Gas index plunged 4% or 414 points. Oil and Natural Gas Corporation (ONGC), Oil India and Reliance Industries tanked 5% each, while Cairn India, Gail India and Petronet LNG dipped 3-4%.
“The sell-off in energy stocks continued as global oil prices fell near $50. Euro zone also posted weak PMI data suggesting slowdown in economy, also disinflationary pressure and showdown in growth as suggested by oil prices weighed on the index,” said Mr. Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
Banking, realty, metal, auto, consumer durables, capital goods, healthcare, IT and power indices too plunged by 3% each. As many as 269 stocks were locked in the lower limit circuit filter on the BSE.
The S&P BSE Sensex tumbled 3% or 855 points, to settle at 26,987, its biggest single-day fall since September 3, 2013, when the index plunged 3.5% or 651 points. CNX Nifty too, plunged 3% or 251 points to settle at 8,127.
In absolute terms, on July 6, 2009, the S&P BSE Sensex had tanked 870 points or 5.8%, while CNX Nifty slipped 259 points or 5.8%.
The total investor wealth, measured in terms of cumulative market value of all listed companies, plummeted by Rs 275,014 crore and stood at Rs 96,74,705 crore at the end of today's trade.
Of this, nearly half or Rs 135,229 crore was wiped off from the BSE Sensex stocks that include blue chips like Tata Consultancy Services (TCS), Oil and Natural Gas Corporation (ONGC), , Reliance Industries, State Bank of India (SBI), ICICI Bank and Housing Development Finance Corporation (HDFC).
Of the 30 Sensex shares, market capitalisation of twenty-four stocks declined by more than Rs 1,000 crore each.
Hindustan Unilever, the sole gainer among Sensex stocks, gained nearly 2% to Rs 775 on BSE after reports that a foreign investment bank upgraded the stock to buy from hold and also raised its target price for the stock.
Among the individual stocks, TCS was the biggest loser, whose m-cap eroded of Rs 17,893 crore in a single day. ONGC and Reliance Industries saw m-cap erosion of Rs 17,795 crore and Rs 13,264 crore, respectively. SBI, ICICI Bank, HDFC, ITC and Tata Motors reported m-cap erosion between Rs 5,000-Rs 10,000 crore each.
“The sharp fall in markets came as a surprise and was likely driven by the weak global markets. There are concerns about the weakness in the global economy (crude prices have been falling sharply) as well as the after –effects of a potential exit of Greece from EU. The sustained fall in crude prices is positive from the Indian economy’s point of view, though, said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
In the near term, mixed set of quarterly numbers and global volatility are likely to restrict significant gains in markets. Government’s action on getting reforms on track (within or outside the budget), as well as potential decline in interest rates are the likely triggers for a further re-rating in the medium-to-long term, adds Shah.
Shares of oil and gas companies were the worst hit as global crude oil prices tumbled on Monday, January 5, 2015. S&P BSE Oil and Gas index plunged 4% or 414 points. Oil and Natural Gas Corporation (ONGC), Oil India and Reliance Industries tanked 5% each, while Cairn India, Gail India and Petronet LNG dipped 3-4%.
“The sell-off in energy stocks continued as global oil prices fell near $50. Euro zone also posted weak PMI data suggesting slowdown in economy, also disinflationary pressure and showdown in growth as suggested by oil prices weighed on the index,” said Mr. Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.
Banking, realty, metal, auto, consumer durables, capital goods, healthcare, IT and power indices too plunged by 3% each. As many as 269 stocks were locked in the lower limit circuit filter on the BSE.
