Mumbai: Investors’ wealth eroded by Rs 7.02 lakh crore in a single day on Friday as stock markets faced heavy drubbing, with the BSE Sensex tumbling 1,048 points due to a broad-based selloff, especially in metal, IT and commodity stocks, tracking sluggish global markets.
A weaker-than-expected earnings season and emerging pressure on technology stocks amid concerns about AI-led disruption also dampened sentiment, traders said.
In a volatile session, the 30-share BSE Sensex tumbled 1,048.16 points, or 1.25 per cent, to close at 82,626.76. During the day, the benchmark tanked 1,140.37 points, or 1.36 per cent, to hit an intraday low of 82,534.55.
The market capitalisation of BSE-listed firms eroded by Rs 7,02,017.71 crore to Rs 4,65,46,643.20 crore (USD 5.13 trillion).
Meanwhile, equity investors’ wealth has been depreciated by Rs 9,52,648.51 crore in the last two trading sessions.
On Friday, foreign institutional investors offloaded equities worth Rs 7,395.41 crore, while domestic institutional investors bought stocks worth Rs 5,553.96 crore, according to the exchange data.
“Indian equities on Friday came under significant selling pressure, weighed down by weak global cues and sharp declines in index heavyweights, particularly metals and IT stocks,” Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
The fall in the benchmark was led by a steep correction following weaker-than-expected results, along with continued pressure in technology stocks amid concerns around AI-led disruption, he added.
“The sector continues to face headwinds amid rising concerns that rapid AI advancements could disrupt traditional service models and weigh on future revenue visibility,” Khemka said.
All sectoral indices ended lower. Metal declined the most by 3.21 per cent, followed by Realty and Commodities by 2.27 per cent each, Utilities by 2.26 per cent, Energy by 1.94 per cent, Oil & Gas by 1.86 per cent, Power by 1.85 per cent, FMCG by 1.74 per cent, and Services by 1.72 per cent.
From the Sensex pack, Hindustan Unilever, Eternal, Titan, Tata Steel, Adani Ports, Tata Consultancy Services, PowerGrid, Reliance Industries, Bharat Electronics Ltd, Asian Paints, Mahindra & Mahindra, HDFC Bank and HCL Technologies were the major laggards.
On the other hand, Bajaj Finance and State Bank of India were the only gainers.
“In the commodities space, gold and silver prices declined up to 10 per cent after the dollar strengthened on the back of stronger than expected US January jobs data, which reduced expectations of near-term interest rate cuts by the Federal Reserve,” Khemka said.
The dollar gained further traction amid media reports that Russia may consider re-entering the dollar settlement system as part of a potential economic understanding with the US, adding additional pressure on precious metals.
A total of 2,960 stocks declined, while 1,253 advanced and 151 remained unchanged on the BSE.
The BSE SmallCap Select Index fell 1.90 per cent, while the MidCap Select Index slipped 1.19 per cent.
