The market saw a bearish crash with the Nifty closing below 17,900 and the Sensex losing 774 points on Wednesday’s closing bell.
Wednesday also marked the expiry day for Jan derivates with Thursday being a public holiday.
The NSE had 35 declines and 15 advances over the day’s trading. The Nifty index has fallen by 226.35 points on the closing bell. The Bank Nifty saw over a 1,000 points decline with public banks losing the most.
3.5 lakh crore of investor wealth was lost in the crash as reported by Business Today.
The short position by Hindenburg Research firm sent the Adani stocks crashing.
The biggest losers of the Nifty 50 were ADANIPORTS (6.13%), SBIN (4.35%), INDUSINDBK (4.23%), HDFCBANK (2.70%) and HDFC (2.21%).
The top gainers of the day were BAJAJ-AUTO (1.45%), HINDUNILVR (1.13%), HINDALCO (O.90%), Britannia (0.89%), and MARUTI (0.82%).
The indices that took the biggest hits are Nifty PSU BANK (3.58%), Bank Nifty (2.54%), Nifty NEXT 50 (2.52%), Nifty Financial Services (2.13%), and Nifty Energy (1.97%).
“Indian equities witnessed significant sell-off as the market appeared apprehensive ahead of the upcoming Union Budget and Fed meeting next week. Sentiments were dampened by persistent FII selling, where funds are being shifted to other EMs as a result of attractive valuations. Furthermore, a weak economic growth outlook that stoked recession fears pulled down global markets," said Vinod Nair, Head of Research at Geojit Financial Services as reported by Economic Times.
There was a culmination of forces with Adani stocks crashing, FIIs selling, F&O closure, and anxiety around the new Union budget has set off a selling spree among investors.
The markets have been treading on uncertain courses amid fears of a recession in the global markets. It only remains to be seen how much damage the Adani stocks beating will spread to the overall markets.
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