Markets crash wipes out Rs 6.80 lakh cr from investors' wealth
New Delhi, Oct 25: Investors' wealth eroded by a whopping Rs 6.80 lakh crore on Friday as equity markets tumbled, driven by a sharp fall in IndusInd Bank shares and unabated foreign fund outflows.
The BSE Sensex tanked 662.87 points or 0.83 per cent to settle at 79,402.29. During the day, it slumped 927.18 points or 1.15 per cent to 79,137.98.
Tracking the weak trend in equities, the market capitalisation of BSE-listed firms tumbled Rs 6,80,383.26 crore to Rs 4,36,98,921.66 crore (USD 5.20 trillion).
"The Indian equity market is experiencing a sharp correction due to multiple factors. The primary driver is foreign institutional selling, driven by valuation concerns and the increased attractiveness of the Chinese market.
"Another major factor is disappointing earnings reports from Indian companies, especially in the consumption sector, which signal an economic slowdown, particularly in urban consumption," Santosh Meena, Head of Research at Swastika Investmart, said.
From the 30 Sensex pack, IndusInd Bank plunged 18.56 per cent after the firm reported a 40 per cent decline in September quarter net profit at Rs 1,331 crore, pulled down by concerns over its asset quality.
Mahindra & Mahindra, Larsen & Toubro, NTPC, Adani Ports, Tata Steel, Maruti, Bajaj Finance and Titan were also among the laggards.
From the blue-chip pack, ITC climbed over 2 per cent after the diversified entity reported a 1.8 per cent increase in its consolidated net profit to Rs 5,054.43 crore in the second quarter ended September 2024.
Axis Bank, Hindustan Unilever, Sun Pharma and ICICI Bank were the other big gainers.
"Markets continued its downward trajectory as broader selloff pulled down key benchmarks with Sensex ending below the crucial 80k mark. The dismal Q2 earnings so far has aggravated the investors’ woes while persistent FII selling continued to create havoc in the market," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,062.45 crore on Thursday, according to exchange data, while Domestic Institutional Investors (DIIs) bought Rs 3,620.47 crore shares.
In Asian markets, Seoul, Shanghai and Hong Kong settled higher, while Tokyo ended lower.
European equity markets were trading in the positive territory. The US markets ended mostly higher on Thursday.
In an uninspiring trade, the BSE benchmark dipped 16.82 points or 0.02 per cent to settle at 80,065.16 on Thursday. The Nifty skidded 36.10 points or 0.15 per cent to 24,399.40 in a volatile trade.
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KSDL invites innovative technology to check sandalwood theft
Bengaluru (PTI): The Karnataka government has invited farmers, scientists and organisations to come up with innovative technologies to prevent sandalwood theft in the state.
The state-owned Karnataka Soaps and Detergents Limited (KSDL), which manufactures Mysuru Sandal Soap has also planned sandalwood cultivation, state Large and Medium Industries Minister M B Patil said on Thursday.
"In a bid to promote sandalwood cultivation, the KSDL has planned a major initiative. As part of it, farmers, scientists, and organisations possessing information on advanced equipment or innovative technologies to prevent sandalwood theft have been invited to approach KSDL and share the details," Patil said in a statement.
Those interested in this initiative will be given an opportunity to demonstrate such technologies before the organisation, the minister said, adding if the proposed solutions are found suitable and effective, steps will be taken for consideration and implementation.
Patil stated that the cost involved in deploying technologies aimed at preventing sandalwood theft would be borne by KSDL.
Further, with a view to encouraging sandalwood cultivation, four farmers who have supplied the highest quantity of sandalwood to KSDL will be honoured with awards on the occasion of the birth anniversary of Nalwadi Krishnaraja Wadiyar on June 4, he said.
On the same occasion, police personnel and forest officials who have made notable progress in apprehending sandalwood thieves and registering cases, along with members of the public who have provided credible information leading to such action, will also be recognised and rewarded, the minister added.
Patil observed that farmers cultivating sandalwood trees on their lands have been facing increasing threats due to theft in recent years. Illegal felling and theft of sandalwood trees have continued for decades.
Although stringent laws are in place to curb such activities, the number of cases resulting in convictions remains very low, he noted.
"In this context, it becomes the responsibility of the organisation to extend both legal and technical support to farmers and encourage them to take up sandalwood cultivation on a larger scale," he said.
According to him, over the past three years, KSDL has procured 174.5 metric tonne of sandalwood directly from farmers across the state and transferred Rs 6.08 crore to their respective accounts.
