Sensex plunged 825.74 factors or 1.26% to settle at 64,571.88 factors on October 23, 2023. File
| Photo Credit: Reuters
Investors’ wealth eroded by ₹7.59 lakh crore on Monday (October 23) because the fairness market took a heavy drubbing amid escalating tensions within the Middle East.
The 30-share BSE Sensex plunged 825.74 factors or 1.26% to settle at 64,571.88 factors. During the day, the index plummeted 894.94 factors or 1.36% to 64,502.68 factors.
This is the fourth consecutive session of decline for the benchmark index and in 4 days, the BSE benchmark has dropped by 1,856.21 factors or 2.79%.
Amid weak development in equities, the market capitalisation of BSE-listed corporations fell by ₹12,51,700.73 crore in 4 days of market crash to succeed in ₹3,11,30,724.40 crore.
On Monday alone, the market valuation of the BSE-listed corporations plummeted ₹7,59,041.63 crore.
“Benchmark indices witnessed severe pounding in the last hour trades as simmering geopolitical tension in the Middle East region triggered a wave of selling pressure and prompted investors to offload equity holdings.
“Investors are already apprehensive about additional rate of interest hike and inflation, and with the addition of the Israel-Hamas battle, the uncertainty has elevated additional and resulting in weak sentiment in international equities,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, said.
Among the Sensex firms, JSW Steel, Tata Steel, Tata Consultancy Services, Tata Motors, Wipro, IndusInd Bank, HCL Technologies, NTPC, State Bank of India and Larsen & Toubro were the major laggards.
Bajaj Finance and Mahindra & Mahindra were the gainers.
Global oil benchmark Brent crude climbed 0.04% to $92.18 a barrel.
In the broader market, the BSE smallcap gauge cracked 4.18% and midcap index dropped 2.51%.
“Fear of regional battle within the Middle East and worries over extra fee hikes by the U.S. Federal Reserve for an prolonged interval have been the foremost reason for concern out there. Even the incomes season has been combined to this point, thus not offering resilience to the market,” Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd, stated.
All the indices ended decrease, with telecommunication plunging 3.82%, industrials falling 3.26%, utilities (3.10%), commodities (3.06%), providers (2.99%), realty (2.84%), energy (2.69%), shopper discretionary (2.25%), IT (2.14%) and oil & fuel (1.88%).
A complete of three,196 corporations declined whereas 638 superior and 156 remained unchanged on the BSE.
