After tanking around 650 points to crash below the 24,000-level on global cues and sharp dip in oil prices, domestic stock market on Wednesday witnessed a deep plunge and regained some lost ground to settle at 418 points. Market insiders, however, feel that despite crude oil concerns, Chinese downward economy also added the woes to dampen the investors’ preference towards equities in Indian markets.
Consequently, the total market capitalisation of all the BSE-listed companies dipped by Rs1,84,086 lakh crore to Rs90,64,734 crore, putting pressure on the rupee that again breached the 68-mark against the dollar. On the other hand, experts, however, said continuous outflow of foreign funds and sustained selling pressure by retail investors and worries over global slowing economic growth as well as falling oil prices have dampened trading sentiments here.
“Expectations of the market going downhill are likely to strengthen as the double whammy impact of oversupply in crude and the concerns in Chinese economy will dampen the investors’ preference towards equities,” said Vinod Nair Head-Fundamental Research of Geojit BNP Paribas Financial Services.
The rupee on Wednesday also crashed below the 68-level after 28 months and closed 23 paise down at 67.95 on fresh demand for the American currency from importers amid a massive fall in domestic stock markets. On the other hand, gold glittered to trade at more than two-month high of Rs26,690 per 10 grammes.
The 30-share Sensex after opening lower at 24,325.77, continued to slide and cracked the 24,000-mark to hit a low of 23,839.76. However, on fag-end buying, the index managed to close above 24,000-level, still down 417.80 points or 1.71 per cent at 24,062.04. The gauge had gained 291.47 points in the previous session backed up by value-buying in select blue-chips.
The NSE Nifty also after cracking the crucial 7,300-mark, settled 125.80 points or 1.69 per cent down at 7,309.30. Intra-day, it shuttled between 7,241.50 and 7,470.90.
With the bearish mood of the market, all nervous investors sold off shares across all sectors, including realty, metal, PSU, power, banking and oil and gas. In the currency market, rupee breached the 68-mark for the first time in September 4, 2013. It partially recovered to end at Rs67.95. In a quarterly update to its World Economic Outlook, IMF had on Tuesday said the global economy will expand by 3.4 per cent in 2016, down from an earlier estimated 3.6 per cent in October.
In Asian circle, Shanghai index crashed over 1 per cent, while Japan’s Nikkei fell 3.71 per cent and Hong Kong’s Hang Seng index plunged 1.82 per cent. European markets too were not different and slid to a 13-month on investor concern about global growth. Global crude oil also slumped to fresh 12-year lows to dip below $28 a barrel after the International Energy Agency warned the oil market could drown in oversupply.
As far as the price yellow metal is concerned, it flared up by Rs340 to trade at Rs26,690 per 10 grams in the national capital, a level last seen on November 3. But globally, gold also rallied 0.69 per cent to trade at $1,095 an ounce in london in early trade as sell-off in equities added to its safe-haven appeal.
Out of the 30-share Sensex pack, 27 scrips ended lower. Adani Ports took the biggest hit as it plunged 5.53 per cent, followed by SBI 5.13 per cent, RIl (3.76 pc), Coal India (3.45 pc), Maruti (3.40 pc), Tata Motors (3.39 pc), Tata steel (2.63 pc), NTPC (2.26 pct), ONGC (2.25 pc), ICICI Bank (2.03 pc), HUl (1.83 pc) and HDFC Bank (1.77 pc). In broader markets, small-cap index fell by 2.04 per cent, while mid-cap ended 2.01 per cent lower.
From the gainers pack, Bajaj Auto rose 0.43 per cent, Hero MotoCorp perked up 0.21 per cent and Wipro gained 0.05 per cent.
“Bears continued to hammer the bourses on global sell-off and crude hitting multi-year lows. Relentless selling by foreign investors and depreciation in rupee raised investors’ concerns,” said Gaurav Jain Director at Hem Securities.