With earnings showing few signs of a recovery and companies cautious about the near-term demand outlook, investors on Tuesday opted to take risk off the table. The Sensex gave up as much as 623.75 points or 1.7% to settle at 36,958.16 while the broader Nifty slid 1.7% to end the session at 10,925.85. The indices would have fared even worse, had it not been for the rally in Reliance Industries which rose smartly by 9.7%.
A clutch of counters such as ITC, Yes Bank, M&M and Tata Steel plunged to their 52-week lows. Approximately, Rs 14 lakh crore of investor wealth has been wiped out over the past month or so and nearly 90% of the constituents of the broader BSE 500 index are in the red. With Tuesday’s fall, the broader Nifty is just 63.30 points away from erasing all the gains for the year and the dollar returns are now a negative 1.7%. Bank Nifty slumped another 703 points to mark its sixth such fall of over 500 points in the last one month.
Since July 5, FPIs have pared their portfolios in all sessions barring three, offloading shares worth over $3 billion.
FPIs sold around $89.4 million worth of stocks on Tuesday, provisional data from the exchanges showed. The broader market remains in deep distress — with about 2,000 stocks hitting 52-week lows after the budget announcement, exacerbating the six-quarter bearish trend in India’s stock markets.
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Source: Financial Express