7 days of selling results in Mcap erosion of Rs 6.4 lakh crore

A manic Monday for D-Street as bears pushed the index deep in red for the seventh consecutive day in a row on February 18 that resulted in the erosion of over Rs 6 lakh crore of the market capitalisation of investors on the BSE.

The average market capitalisation of BSE listed companies fell from Rs 142.74 lakh crore recorded on February 7 when Sensex hit an intraday high of 37,172 to Rs 136.33 lakh crore on February 18.

The last time when Sensex fell for seven consecutive days in a row was back in January 2018. The index fell from January 30 to February 7, 2018.

Both Sensex and Nifty slipped below their crucial support levels. The Nifty broke below 100-day moving average (DMA), as well as 10,650 and the next big support is placed at 10,550, suggest experts.

Geopolitical concerns, the rise in crude oil prices dented market sentiment. Persistent selling by foreign institutional investors (FIIs) seen in the last few trading session added to concerns, they say.

“Market remained on a selling spree as reducing foreign inflows due to fear of escalation of tensions at the border impacted the sentiment. The rupee weakened and 10-year bond yield inched up. Rising oil prices are expected to weaken domestic macros,” Vinod Nair, Head of Research, Geojit Financial Services Ltd said.

“Volatility in the market will continue due to lack of domestic triggers and investors are likely to remain cautious. Global market stands positive supported by hope in US-China trade deals,” he added.

The fall in the Sensex was led by losses in RIL, TCS, ITC, HDFC Bank, ICICI Bank, as well as HUL. The S&P BSE Sensex closed 310 points lower at 35,498 and the Nifty50 ended 83 points down to close at 10,640.

Sectorally, the S&P BSE FMCG index slipped 1.3 percent, followed by the Energy index which was down 1.38 percent, and the Consumer Durable index saw a cut of 1.39 percent.

The S&P BSE Mid-cap index was down 1.04 percent while the S&P BSE Small-cap index dropped 1.01 percent, underperforming the benchmark indices.

The big carnage was seen in the broader market as more than 300 stocks on the NSE hit a fresh 52-week low that includes MRF, Dymatic Tech, BASF India, Solar Industries, Tata Elxsi, Steel Strips, Wheels India, Godrej Consumer, MCX, M&M etc. among others.

More than 500 stocks on the BSE hit a fresh 52-week low that includes Polson, Wabco India, Cera Sanitaryware, Force Motors, TTK Prestige, Bharat Forge, Finolex Industries, TVS Motor etc. among others.

Stocks in news:

Yes Bank ended 2 percent lower as RBI threatened action for disclosing ‘NIL’ divergence report.

Shares of Lumax Auto Technologies advanced 2 percent after the company secured LOI from one of the OEMs for the supply of integrated plastic parts.

Shares of Glenmark Pharma added 1 percent after it received final approval by the USFDA for Clobetasol Propionate Foam.

The share price of Titagarh Wagons surged 5 percent as company secured orders worth of Rs 1,740.60 crore.

Global market update:

European markets were trading mixed, with DAX and FTSE down marginally, while CAC was flat.

Major Asian stock markets closed higher as the trade talks between the US and China will begin in Washington.

The Nikkei gained nearly 2 percent to close at 21,281.85, Shanghai ended 2.7 percent higher at 2,754.36, while Hang Seng ended 446.17 points higher at 28,347.01.