ashok321
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NEW DELHI: It was a terrible Tuesday for investors on Dalal Street as the total market capitalisation of all the BSE-listed firms slipped to Rs 129.67 lakh crore from Rs 130.52 lakh crore – a hit of massive Rs 85,000 crore.
The biggest culprit was FMCG major ITC, whose stocks witnessed their biggest fall in 25 years. The scrip, which plunged as much as 15 per cent during the day, eventually closed 12.63 per cent down at Rs 284.60.
market capitalisation of the FMCG major alone declined by Rs 50,045 crore to Rs 3,46,125 crore from Rs 3,96,171 crore.
Investors didn’t like the news of GST Council on Monday raising the cess on cigarettes, which can take away an estimated Rs 5,000 crore annual ‘windfall’ manufacturers could have reaped from lower GST rates.
Among others, oil-to-telecom major Reliance Industries snapped 11-day gaining streak, as its shares slipped by 2.03 per cent down at Rs 1,519.90. The firm took a hit after the government ordered the company along with Shell and ONGC to pay a $3 billion in penalty following an arbitration award in the Panna Mukta Tapti (PMT) oil field dispute that went in favour of the government, according to people familiar with the matter.
If the two stocks, ITC and RIL, are kept aside, overall market breadth was positive with 29 stocks in the Nifty index closing in green.
“Heavy selling in certain index heavyweights dragged benchmark indices lower with the Sensex and the Nifty finally closing the day with losses of nearly 1 per cent. Lacklustre global stocks and lower oil prices also played a role in dampening domestic sentiment,” said Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas Mutual Fund said.
On further movement of domestic equity markets, Vinod Nair, Head of Research, Geojit Financial Services said, “There is chance of further consolidation in the near-term due to stock specific reactions as a result of weak Q1 result. At present, FY18 EPS forecast is very high at 20 per cent while preview for Q1 is dull which will lead to downgrade.”
Amid anticipation of the Nifty touching the magical mark of 10,000, one set of voices on Dalal Street are talking of an up to 10 per cent correction in the near term, which may last up to 3-4 months.
While Nifty’s closure above the 9,900 mark for the first time on Monday raised hope that it may be nearing the five-figure mark, the nearly 100-point fall in early trade on Tuesday gave more credence to the doomsayers’ theory of a swing in the reverse direction.
