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The S&P BSE Sensex recorded its second sharpest fall in past five years by plunging nearly 1,500 points in the last four trading sessions after the rupee hits record low against dollar today.
The benchmark index closed at 17,906, its lowest level since 11 September 2012 and has tanked 1,462 points, while the CNX Nifty that closed at 5,302 levels on Wednesday has slipped around 440 points in four days.
Earlier, in November 2011, the index has tanked 1,623 points between eight trading sessions. During the same month in 2008, it slipped 1,762 points in seven trading days.
Currency woes
The benchmark index closed at 17,906, its lowest level since 11 September 2012 and has tanked 1,462 points, while the CNX Nifty that closed at 5,302 levels on Wednesday has slipped around 440 points in four days.
Earlier, in November 2011, the index has tanked 1,623 points between eight trading sessions. During the same month in 2008, it slipped 1,762 points in seven trading days.
Currency woes
Rupee plunged to a record low of 64.54 against the dollar as heavy dollar buying from large state-run banks along with demand from custodian banks hurt the local currency on Wednesday.
The market meltdown since the past for days has seen investors’ wealth erode erosion to Rs 4.37 lakh crore as against at Rs 58.60 lakh crore prior to this sharp correction.
Top three companies – ITC (224 points), Reliance Industries (169 points) and ICICI Bank (102 points) have collectively accounted for one-third, or 493 points, of total S&P BSE Sensex fall.
“The fall was also led by selling in index heavy weights like L&T, Reliance and Infosys besides ITC. This coincided with further weakness in the INR as it touched a fresh record low of 64.49 against the US dollar. The market is now awaiting the Fed meeting notes to be released today for fresh clues on when the central bank plans to taper its monthly bond purchases,” says Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.
Meanwhile, out of BSE-500 stocks, as many as 92 stocks have seen their market value decline by over 10% each, while 172 stocks fall in the range of 5-10% during this period.
Among sectors, consumer durables was the major loser that dipped 13%, while capital goods, oil and gas, fast moving consumer goods (FMCG) and auto index declined 9% each.
“If Nifty ends August below the 5,450 mark, it is likely to enter into a new medium-term trading band of 4,900 – 5,500 levels,” said Amar Ambani, Head of Research at IIFL.
| TOP LOSERS FROM BSE-500 | |||
| Name | Aug 14,13 | Aug 21,13 | %chg |
| Ruchi Soya | 46.90 | 32.25 | -31.2 |
| Bank of India | 180.10 | 145.40 | -19.3 |
| Titan Ind | 273.35 | 222.60 | -18.6 |
| Turbotech Engg | 198.95 | 162.15 | -18.5 |
| SpiceJet | 25.80 | 21.15 | -18.0 |
| Alembic Pharma | 157.65 | 129.25 | -18.0 |
| Core Education | 19.35 | 16.00 | -17.3 |
| Aditya Birla Nuvo | 1249.05 | 1037.45 | -16.9 |
| Canara Bank | 248.95 | 206.85 | -16.9 |
| TBZ | 170.10 | 141.35 | -16.9 |
| Price on BSE in Rs | |||
| Data complied by BS Research | |||
