Markets tank nearly 1 pc amid widespread sell-off Sensex slips below 82K

Mumbai, Jan 23 (PTI) Equity benchmark indices Sensex and Nifty resumed their downward journey to end nearly 1 per cent lower on Friday, wiping out nearly Rs 7 lakh crore from investors' wealth, weighed down by widespread sell-off and the rupee hitting a record low against the US dollar.
    Besides, investors rushing to safe-haven assets and unabated foreign capital outflows in the absence of domestic triggers dampened investor confidence, traders said.
    In a cautious trade, the 30-share BSE Sensex tumbled 769.67 points, or 0.94 per cent, to close at 81,537.70. During the day, the index slumped 835.55 points, or 1.01 per cent, to hit an intraday low of 81,471.82.
    A total of 2,989 stocks declined, while 1,229 advanced, and 143 remain unchanged on the BSE.
     The 50-share NSE Nifty dived 241.25 points, or 0.95 per cent, to settle at 25,048.65. In the intraday session, it plunged 264.6 points, or 1.04 per cent, to hit a low of 25,025.30.
     "Indian equity markets went on a sell-off mode despite an optimistic global market and supportive domestic PMI data. Sentiment weighed down on uptick crude oil prices, a sharp depreciation of the rupee to record lows, FIIs selling and earnings delivery falling marginally short of expectations amid premium India valuations," said Vinod Nair, Head of Research, Geojit Investments Ltd.
     On a weekly basis, the BSE Sensex tumbled by 2,032.65 points, or 2.43 per cent. The broader NSE Nifty also slumped by 645.7 points, or 2.51 per cent.
     On Friday, the market capitalisation of BSE-listed firms plunged by Rs 6,95,963.98 crore to Rs 4,51,56,045.07 (USD 4.93 trillion).
     This week, the market valuation of BSE-listed firms nosedived by Rs 16,28,561.85 crore.
    Despite a positive opening, deep losses in various heavyweight stocks, including Adani Group shares, intensified selling pressure.
    Among the 30 Sensex constituents, Adani Ports, Eternal, IndiGo, Axis Bank, Bajaj Finserv, Power Grid, Bharat Electronics Ltd, State Bank of India, Maruti Suzuki India, Bajaj Finance, NTPC, Trent, Larsen & Toubro and Reliance Industries were the laggards.
    On the other hand, Tech Mahindra, Hindustan Unilever, Infosys, Asian Paints, Tata Consultancy Services, Titan and UltraTech Cement were among the gainers.
    The BSE smallcap gauge slumped 2.19 per cent, while the midcap index fell 1.56 per cent.
     All sectoral indices settled in the negative territory. Services dropped the most by 4.20 per cent, Utilities by 3.52 per cent, Realty by 3.35 per cent, Power by 2.81 per cent, PSU Bank by 2.37 per cent, Capital Goods by 2.09 per cent, Industrials by 1.69 per cent, and Bankex by 1.44 per cent.
    Foreign institutional investors (FIIs) offloaded equities worth Rs 2,549.80 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 4,222.98 crore, according to exchange data.
    Realty and PSU bank stocks underperformed on execution-related delays and profit booking, while Adani Group stocks came under pressure amid reports of potential summons by the US regulator, Nair added.
    "Relentless foreign fund outflows remained the dominant drag, with FIIs extending their selling streak and maintaining a clear sell-on-rallies stance amid concerns over earnings visibility and relatively expensive valuations.
    "Tepid quarterly results from index heavyweights such as ICICI Bank and HCL Technologies further weighed on sentiment, reinforcing worries that a meaningful earnings recovery is still some time away. Rising crude oil prices and a sharply weaker rupee, which hit a fresh record low despite RBI intervention, added to macro concerns around inflation and the trade deficit," Gaurav Garg, Lemonn Markets Desk, said.
    In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index, South Korea's Kospi index and Hong Kong's Hang Seng index closed higher.
    European markets were trading lower in mid-session deals. US equities ended higher on Thursday.
    Gold and silver prices rallied on Friday to hit fresh lifetime highs in the futures trade, tracking record gains in international markets amid a weakening US dollar and rising expectations of interest rate cuts by the Federal Reserve.
    The rupee hit an all-time low of 92 on Friday and recovered marginally to settle at a fresh peak of 91.88 (provisional) against the US dollar.
    Brent crude, the global oil benchmark, rose 1.03 per cent to USD 64.72 per barrel.
    On Thursday, the 30-share BSE Sensex climbed 397.74 points to close at 82,307.37, while the broader NSE Nifty rose 132.40 points to settle at 25,289.90.
     "Looking ahead, market sentiment is likely to remain cautious as investors position themselves for the upcoming Union Budget and the US Fed’s interest rate decision, where expectations are muted," Nair said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)