New Delhi, Nov 22 (PTI) Investor wealth eroded by Rs 8 21,666.77 crore on Monday as the market experienced a massive selloff not seen in many months.
The Sensex BSE benchmark dipped 1,170.12 points or 1.96% to close at 58,465.89. This is the worst one-day drop for the gauge in more than seven months. It was also the fourth straight session of decline for the Sensex.
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During the day, the index fell 1,624.09 points.
Following the weak trend, the market capitalization of BSE-listed companies fell from Rs 8 21 666.77 crore to Rs 2 60 98 530.22 crore.
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“The Indian market has seen a sharp decline during today’s trading session amid global stability. Heavyweight Reliance is exerting pressure on the market as bills are withdrawn from farm laws and the poor performance of Paytm’s IPO is an excuse for a long-awaited correction. FIIs continually sell in the Indian market as they feel valuations are stretched, but they still have a long-term bullish view of the market. ‘India,’ said Santosh Meena, head of research, Swastika Investmart Ltd.
Bajaj Finance, Bajaj Finserv, Reliance Industries, NTPC, Titan and SBI were the biggest laggards, falling to 5.74%.
Reliance Industries fell more than 4 percent after the company put aside a proposed deal to sell a 20 percent stake in its oil refinery and petrochemical business to Saudi Aramco for $ 15 billion of dollars.
“A moderate listing and continued weak trading of Paytm, India’s largest next-generation fintech, is a big sentimental setback for the domestic market, which was thriving in a strong primary market. This will impact the influx of money from the retail segment, which has been a key player during the year. FIIs are also sellers due to the fear of India being overvalued relative to their peers.
“The low influx of IFIs may increase due to the withdrawal of three farm laws, which puts the brakes on reformist government agendas in the context of the upcoming national elections next year.” the year, ”said Vinod Nair, research manager at Geojit Financial Services.
One97 Communications, the parent company of Paytm, fell more than 13% to close at 1,360.30 per share on BSE.
In the broader market, the midcap and smallcap indices fell to 2.96 percent.
“The cancellation of the Reliance-Aramco deal, the withdrawal of farm laws, the persistent sales of FIIs and the disappointment of Paytm’s list have shaken market sentiment and caused the market to fall free,” according to Siddhartha Khemka, Retail Research Manager, Motilal Oswal Financial Services Ltd.
(This is an unedited, auto-generated story from the Syndicated News Feed, the staff at LatestLY may not have edited or edited the body of the content)