Investor wealth saw an erosion of Rs 2.68 lakh crore on Friday pulled down by massive selling in the stock exchange in which the BSE benchmark index tumbled 448 points.
The 30-share index settled lower by 447.60 points, or 1.38 percent — its biggest single-day fall since November 15 last year — in 31,922.44. The reduction was the biggest in almost ten months.
Others who weighed included Reliance Industries and ICICI Bank.
BSE realty melted the maximum by 4.29 percent. Metal, capital products and power too added to this weakness.
On BSE, 2,139 stocks declined, while 484 progressed and 138 remained unchanged.
“The markets saw a sell-off of more than 1 percent which in our opinion is due to weak international cues which in turn were due to geopolitical tensions surrounding North Korea. The sell-off was more pronounced as FIIs continued to pull out funds in a reaction to the political tensions and recent revision of China’s sovereign rating,” said Nitasha Shankar, Sr Vice President and Head of Research, YES Securities.
“The market correction has been due to extraneous event viz, the geopolitical tension in the Korean peninsula. History informs us that such events invite sharp reactions from equity markets and the pessimism is short-lived; time and again the markets have bounced back with new vigour,” said Arun Thukral, MD & CEO, Axis Securities.