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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Maharashtra Congress chief Patole meets Kharge, dismisses resignation talk as 'rumours'
New Delhi, Nov 25: Maharashtra Congress chief Nana Patole on Monday dismissed as "rumours" talk of his resignation following the assembly polls debacle and stressed on "collective accountability" for the defeat.
Patole made the remarks after meeting Congress president Mallikarjun Kharge during which he conveyed that the result had not reflected the sentiments of the people of Maharashtra.
"Mallikarjun Kharge, Rahul Gandhi, Priyanka Gandhi and other national and state leaders were leading Maha Vikas Aghadi (MVA) from the forefront during the assembly polls. So, we were sure that the trends were in favour of Maha Vikas Aghadi, even the citizens believed that," the Maharashtra Congress chief said.
"If I talk about Nanded, the Lok Sabha bypolls and assembly elections were held on the same day. In Lok Sabha bypolls, our candidate was winning in six assembly seats, whereas, in the assembly elections, we are not winning even a single seat," he said, adding that there cannot be such a "huge difference".
This is the sentiment among the people also and they have stated that this government in Maharashtra was not being formed on their votes, he claimed.
"So, I spoke to Mallikarjun Kharge on this," he added.
Asked whether he had offered to resign or the party had asked for his resignation after the Maharashtra assembly polls defeat, Patole said, "These are all rumours and there is no truth in them. There is collective accountability."
Patole also said he will meet Rahul Gandhi in a day or two and discuss all issues.
"Democracy is being finished. We have discussed that... there was no talk of resignation," he said.
The MVA alliance, comprising the Congress, NCP (Sharadchandra Pawar) and Shiv Sena (UBT), was restrained to 46 seats by the Mahayuti that reaped a rich harvest of 230 seats in the 288-member House.
