It was another bad session for the Indian markets as Sensex breached 19,000 level and fell nearly 449.22 points to end below the 19,000-mark, edging India out of the trillion dollar club. Nifty also fell by 143 points to 5,542.25, 2.52 per cent down. Due to the initial crash in rupee, the stock markets traded under immense pressure.
After Tuesday’s plunge and the rupee’s decline, India’s market capitalisation stood at `60.18 lakh crore, which translates to $989 billion at exchange rate of 60.8 versus dollar.
The rupee retreated from record lows to trade at 60.8 levels at 1710 hours.Out of the 30 stocks of sensex, 26 closed under pressure lead by Tata Power which fell nearly by 14.5 per cent due to its disappointing first quarter results. A similar view was seen on Nifty-50 where 46 stocks out of the 50 scrips closed in red.
All the sector indices of Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) closed under pressure. Biggest fall was seen in Consumer Durable index which fell 5.77 per cent followed by real estate and banking index which crashed by 4.61 per cent and 4.14 per cent respectively.
Market experts believe that the market is trading with a negative bias and investors were merely trying to limit their losses and were seen exiting their position as and when they saw an opportunity. FIIs and DIIs bother were seen selling their stakes. Midcap banking stocks were the worst hit lead by Yes Bank which fell 8.32 per cent. Union Bank fell by 6.19 per cent and Bank of India closed 5.41 per cent down. As per experts, there is fear among investors that if the currency remains volatile then the liquidity tightening measures taken by the Reserve Bank will continue for a longer term than what was earlier anticipated.