Indian equity benchmarks fell sharply in afternoon deals on Monday, dragged down by metal, technology, banks and financials. The BSE Sensex slumped over 900 points while the NSE barometer Nifty hit the sub 16,850 level. At 1: 20 pm, the 30-pack Sensex was down 901 points or 1.57 per cent at 57,087. The NSE benchmark was down 266 points or 1.55 per cent at 16,834. In the domestic indexes, nearly 3.90 lakh crore of BSE market cap was wiped out, as a result of the fall in the domestic indexes. Despite a Swiss-backed acquisition of troubled Credit Suisse by UBS Group, the domestic benchmarks cracked today on concerns of risks in the global banking system.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: "The fears of financial crisis in the US and Europe seem to be largely contained by the quick response of the governments and central banks. The failure of large financial institutions will lead to systemic issues leading to financial contagion and eventually to a recession, and is a good lesson from the 2008 global financial crisis. This time, as a result of the crisis, there has been a concerted global action - the latest being the buyout of Credit Suisse by UBS to contain the crisis. The BSE m-cap suggested that the investor wealth fell to Rs 253.62 lakh crore compared with a valuation of Rs 257.52 lakh crore in the previous session. Frontline stocks such as Reliance Industries, HDFC twins HDFC and HDFC Bank Infosys, Tata Consultancy Services TCS Bajaj Finance and State Bank of India SBI contributed to the fall today.
As many as 332 stocks hit their 52 week lows today. Biocon, Bluedart, Century Ply, Crompton, and Emami hit their lowest one-year lows, as well as AAVAS Financiers, Alkyl Amines Chemcicals, Balaji Amines, Bata India, Biocon, Bluedart, Century Ply, AAVAS Financiers, Alkyl Amines Chemcicals, Balaji Amines, Bata India. Today, 83 stocks hit their one-year highs.
2,633 stocks were seen declining out of 3,637 stocks. Only 879 stocks were advancing, while 125 stocks remained unchanged.
Balrampur Chini Mills, HAL, Adani Total Gas were down to 7%.
The shares of Balrampur Chini Mills, Hindustan Aeronautics, India Cements, IRB Infrastructure Developers, Deepak Fertilisers, National Aluminium and Macrotech Developers fell to 6.65 per cent in afternoon deals.
The index was dragged down by Reliance, HDFC duo, Infosys, TCS, ICICI Bank, Bajaj Finance, SBI, L&T, Bajaj Finserv, Tata Steel, Tata Motors, and UltraTech Cements. RIL, HDFC twins, Infosys and TCS alone contributed negatively to a 380 point decline.
All 15 sub-indices were down on the NSE. Nifty IT, Nifty Metal, Nifty Bank, Nifty Financial Services and Nifty Auto fell sharply.
Foreign institutional investors sold 1,766. On Friday, there were 53 crore worth of equity on a net basis, while domestic investors bought about 1,817. According to the provisional NSE data, 14 crore worth of shares are worth of.
Asian markets were mostly seen trading mixed on the global front. Japan's Nikkei index fell by 1.42 per cent, South Korea's Kospi index was down 0.69 per cent, Hong Kong's Hang Seng fell 2.57 per cent and the Shanghai Composite index fell 0.48 per cent. Wall Street equities plunged on Friday. The US stock futures indicated a gap-down start for Wall Street later in the day.