Investors become poorer by Rs 5 lakh crore in two days of market crash
Mumbai : Investors became poorer by Rs 5 lakh crore in two days of stock market crash where the BSE benchmark index plummeted by 1,357 points.
Markets witnessed severe selling Thursday with the benchmark Sensex crashing over 806 points to end at 35,169.16 after the rupee crashed to a new life-time low and global crude oil price breached the US $86 a barrel.
The gauge had lost 550.51 points Wednesday on rupee woes and surging crude oil prices.
Led by the sharp sell-off in equities, the market capitalisation of BSE-listed companies tumbled Rs 5,02,895.97 crore to Rs 1,40,39,742.92 crore (US $1.90 trillion). The dollar figure has been arrived at by calculating the m-cap from rupee’s intra-day low of 73.81 Thursday. With this, market capitalisation of BSE-listed firms slipped below the US $2 trillion.
“The strongest of businesses and the bluest of blue chips have cracked in the last couple of sessions, which highlights the prevailing negative sentiment and an environment of pessimism. With the rupee hitting record low, crude prices moving northwards, increasing fears of a broadening current account deficit along with the liquidity worries led to another major fall in the indices and broader markets.
“With deteriorating macros, all eyes will now be on the second quarter earnings and how the current liquidity situation is addressed,” said Devang Mehta, Head – Equity Advisory, Centrum Wealth Management.
The bloodbath on the bourses was primarily triggered by continued slide in the rupee which hit yet another low of 73.81 (intra-day) against the dollar, brokers said.
From the 30-share pack, 24 scrips declined, while 6 advanced. RIL was the worst hit from the pack plunging 7.03% followed by Hero MotoCorp 5.45% and TCS 4.54%.
In the broader market, the S&P BSE midcap index fell by 1.93% and smallcap index 2.07%.
“Indian markets have been seeing a sharp sell off on account of depreciation in rupee and higher crude prices. This negative sentiment was further reinforced by fears of liquidity crisis to support credit growth following the IL&FS scare,” said Nitasha Shankar, Sr vice president and Head of Research, YES Securities.
Nearly 400 stocks hit their 52-week low on BSE Thursday.
At the BSE, 1,889 stocks declined, while 775 advanced and 138 remained unchanged.
courtesy : hindustantimes.com
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Violence reported in several parts of Kerala after civic poll results
Kozhikode (PTI): Violence erupted overnight at various places across Kerala, particularly in northern districts, following the announcement of local body election results, police said.
In Eramala in Kozhikode district, tension prevailed throughout the night after the Indira Gandhi Bhavan, a Congress office, was allegedly attacked by CPI(M) workers.
According to an FIR registered at Edachery police station, around 200 people marched towards the Congress office carrying dangerous weapons and vandalised the building, causing damage estimated at around Rs five lakh.
A statue of late prime minister Indira Gandhi was also damaged in the attack, police said. Soon after, UDF activists gathered at the spot, further aggravating the situation.
However, with the deployment of additional police personnel, the situation was brought under control, an officer said.
Police said another violent incident was reported at Marad, where stones were allegedly pelted at a UDF victory procession, leaving several persons injured.
In Sultan Bathery in Wayanad district, police registered a case after a car carrying a UDF activist and his family members was allegedly attacked by around 40 CPI(M) workers, an official said.
Sultan Bathery police also booked UDF activists in a separate incident for allegedly attacking a CPI(M) worker who objected to the bursting of crackers near his house, the officer said.
In Panoor in Kannur district, houses of several Muslim League activists were allegedly attacked by CPI(M) workers. Vehicles parked at the houses were also damaged.
According to Panoor police, the violence broke out after a UDF victory rally was allegedly stopped by CPI(M) workers armed with swords and daggers. Some UDF leaders sustained injuries in the clash.
Clashes were also reported between UDF and LDF workers at Ulikkal in Kannur district, though police intervention brought the situation under control later in the night, an officer in the Ulikkal police station said.
In Bedakom in Kasaragod district, an LDF victory march turned violent after CPI(M) activists allegedly intercepted UDF workers passing through the area. Some policemen who intervened suffered minor injuries, an officer said.
Similar violence was reported from Neyyattinkara in Thiruvananthapuram district following clashes between CPI(M) and BJP workers. Police said workers from both sides sustained minor injuries and were admitted to hospitals. Cases will be registered after formal complaints are received, police said.
