Kamal Ghorui
MUMBAI: The day the war in West Asia completed a month, Dalal Street witnessed one of its most brutal sell-offs since the conflict began on Feb 28. During Friday’s session, with sensex-heavyweight Reliance Industries tanking 4.6%, the index closed 1,690 points or 2.3% lower at 73,583 points.The crash in RIL’s stock price that came on the back of imposition of windfall tax on petro-product exporters by govt, the rupee’s slide to a record low level against the dollar, rising bond yields and strong foreign fund selling, all because of the war in West Asia, led to Friday’s slide in stocks, market players said.
Sensex tanks 1690 points
The sell-off left investors poorer by nearly Rs 9 lakh crore with BSE’s market capitalisation now at Rs 422.2 lakh crore, exchange data showed.Foreign funds were again the main sellers of stocks with the net outflow figure at Rs 4,367 crore, BSE data showed.Since the war between the US-Israel and Iran started, the sensex has lost a little over 7,700 points or 9.5% while investors are poorer by about Rs 41.4 lakh crore. During the same period, foreign portfolio investors (FPIs) have net taken out a little over Rs 1.1 lakh crore from the domestic stock market, data from NSDL and BSE showed.According to Vinod Nair of Geojit Investments, Indian equities ended lower after a volatile session as rising bond yields coupled with negative cues from western markets and mixed Asian performance kept investors on the edge. Nair feels that the near-term sentiment for market remained fragile amid geopolitical risks and potential earnings downgrades due to supply shocks.
