Stock market in turmoil, investors lose Rs 6 lakh crore, rupee also in trouble

Mumbai (The Uttam Hindu) – Indian stock markets witnessed heavy selling on Friday. The Sensex closed down 769.67 points, or 0.94 percent, at 81,537.70, and the Nifty declined 241.25 points, or 0.95 percent, to 25,048.65.

The market started the morning with a surge, bringing some cheer to investors' faces, but this joy was short-lived. As the day progressed, the market plummeted, wiping out nearly ₹6 lakh crore of investor wealth.

Realty and PSU banking stocks led the market downward. Nifty Realty closed down 3.34 percent, Nifty PSU Bank 2.27 percent, Nifty Energy 1.92 percent, Nifty India Defence 1.80 percent, Nifty Infra 1.69 percent, Nifty PSE 1.54 percent, and Nifty Commodities 1.38 percent. Nearly all major indices closed in the red.

Tech Mahindra, HUL, Infosys, Asian Paints, TCS, Titan and UltraTech Cement were among the gainers in the Sensex pack. Eternal, Indigo, Axis Bank, Bajaj Finserv, Power Grid, BEL, SBI, Maruti Suzuki, NTPC, Bajaj Finance, Trent, L&T, Kotak Mahindra Bank and Bharti Airtel and M&M were among the losers. Along with largecaps, midcaps and smallcaps also declined. The Nifty Midcap 100 index was down 1,045.65 points or 1.80 percent at 57,145.65, and the Nifty Smallcap 100 index was down 324.50 points or 1.95 percent at 16,352.75.

Market experts said that despite the rally in global markets and strong PMI data, the Indian equity market witnessed significant selling. This was due to the rupee hitting a record low against the dollar and continued selling by foreign investment companies (FIIs). This has kept investor sentiment negative. The Fed's interest rate cut and the Union Budget will be key factors for the market in the coming days.

Indian markets opened on a positive note, tracking positive cues from global markets. The Sensex opened marginally higher by 28 points at 82,335, and the Nifty gained 55 points to 25,344.