On Friday, the last trading day of the week, the ‘bear’ grip on the stock market tightened further. Thus, the market ended with a third straight day of decline. The BSE Sensex lost another 453 points to settle below 60,000. The national stock market index Nifty settled down 132.70 points (0.74 per cent) at 17,859.45. Following this, in the first week of the new year both the Sensex and Nifty indices suffered losses.
Bank interest rates are expected to rise in most countries to curb rising inflation. The impact of this continues to reverberate in the domestic market as well. Also, the outflow of investments by foreign corporate investors and the falling value of the rupee against the dollar has greatly affected the appetite of investors. Following this, leading stocks faced heavy selling for the third straight day, brokerages said.
Out of a total of 3,638 traded shares, only 1,330 shares gained on the BSE. 2,178 stocks came on the fall list. 130 stocks remained unchanged in price. Tech index fell by 1.86 percent, IT by 1.77 percent, metal by 1.28 percent and bank index by 1.04 percent.
Sensex down 453 points: The Sensex, which opened the morning up 35.47 points at 60,388.74, touched a high of 60,537.63. Later, the Sensex, which had dipped as low as 59,669.91, ended down 452.90 points (0.75 per cent) at 59,900.37 as stocks picked up selling. At one point the Sensex had lost 867.722 points from its peak.
TCS falls sharply: M&M, Reliance, Nestlé, ITC, L&T and 25 other stocks were the lowest on the Sensex list. Meanwhile, IT major TCS led the decliners by 2.97 percent, Indus Ind Bank by 2.81 percent, Bajaj Finsav by 2.63 percent and Tech Mahindra by 2.40 percent. Also, Bajaj Finance, Kotak Bank, Infosys, Bharti Airtel, Tata Motors, Wipro, HDFC, HCL Tech, Titan, Axis Bank, ICICI Bank among others fell between 1 and 2 percent. SBI, Maruti, HDFC Bank, Tata Steel also made it to the cheapest list.
Market capitalization fell by Rs 2.21 lakh crore
Foreign institutional investors on Friday sold shares worth Rs 2,902.46 crore in Indian stock markets and withdrew investments. In the last three days alone, they have sold shares to the tune of Rs.6,972,46,000 crores. Meanwhile, market capitalization declined by Rs 2.21 lakh crore to Rs 279.75 lakh crore at the end of trading. At the same time, the number of registered investors rose to 12.18 crore as on Friday.
Jan. Quarterly results of IT companies will be released from 9
Amidst much anticipation, the information technology (IT) companies’ third quarter results of this financial year have been coming out consecutively since January 9. Leaders TCS on January 9, Infosys and HCL Tech on January 12, Wipro on January 13 will release their quarterly results. Market sources said the results could have a big impact on the market.