According to the report by the Press Trust of India (PTI), due to the poor industrial growth and negative global cues, Indian investors in the stock market saw their wealth eroded by 1.6 lakh crore.
Sensex fell 0.5 per cent in early trade on Friday, with financials leading the losses, taking cues from weak world equities. The sensex dropped by 432 points.
This is the steepest decline registered by the Sensex since a 467-point fall on May 19, 2010.
Marketmen attributed today’s debacle to weak cues from Europe and China, as well as poor domestic industrial production numbers for the month of September.
SMC Capitals Equity Head Jagannadham Thunuguntla said, “This is a knee-jerk reaction to the negative news flow from the global markets. Dalal Steet was already in a bearish mood, which became worse after the IIP numbers almost halved to 4.4 per cent for the month of September as against the year-ago period.”
The descent of the index was led by blue-chips Reliance Industries, ICICI Bank, SBI and DLF.
At the close of today’s trade, market capitalisation of the country’s most valued firm, Reliance Industries, stood at Rs 3.47 lakh crore, while state-run ONGC and software major TCS’s valuations were Rs 2.79 lakh crore and Rs 2.06 lakh crore, respectively.