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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SC upholds inclusion of ‘secular, socialist’ in Preamble of Constitution
New Delhi: The Supreme Court on Monday upheld the inclusion of the words ‘socialist’ and ‘secular’ in the Preamble of the Constitution, confirming their retrospective application from November 26, 1949. The court ruled that the power to amend the Constitution under Article 368 extends to the Preamble, which is an integral part of the document.
A Bench led by Chief Justice of India Sanjiv Khanna stated, “The power under Article 368 cannot be curtailed. It will equally apply to the Preamble.” The 42nd Constitutional Amendment, which introduced these terms in 1976 during the Emergency, was challenged on grounds of its retrospective application and the lack of states’ ratification.
The petitioners, including BJP leader Subramanian Swamy, argued that the amendment forced a particular economic theory on the nation and violated the original intent of the Constitution. Advocate Ashwini Kumar Upadhyay contended that the Preamble reflects the will of the people at the time of adoption in 1949 and is therefore unalterable.
The court dismissed these objections, affirming that both socialism and secularism are part of the Constitution's Basic Structure. The Bench clarified that socialism refers to a welfare state ensuring equality of opportunity without negating private sector participation or individualism. It emphasised that secularism is embedded in the Constitution, particularly in the principles of equality and fraternity.
Chief Justice Khanna remarked, “Secularism has always been a core feature of the Constitution.” He added that the amendment did not impose socialism as dogma but aligned with the welfare goals enshrined in various constitutional provisions.
