Bloodbath on Dalal Street as Sensex falls over 1,900 points, worst in last 9 months
New Delhi | Jagran Business Desk: In a huge setback for investors, the 30-share BSE Sensex on Friday crashed by 1,939.32 points or 3.80 per cent -- the worst fall since May last year -- to end at 49,099.99 while Nifty plunged 568.20 points or 3.76 per cent to end at 14,529.15 amid weak global cues.
Banking and financial stocks suffered the most on Friday's bloodbath at Dalal Street as most of the shares of several private and government banks and financial institutions plunged by 5 per cent.
Stock market experts suggested that the massive sell-offs in world equities after a rout in global blond markets was the main reason behind Friday's bloodbath. They said that rising bond yields seem to have eroded investor interest in riskier equities, adding the bond market cues often reflect in equity markets.
However, experts didn't express much disappointment as they feel that market's long-term strategy of 'buy on dips' has been rewarding and can work in the future as well.
"Domestic markets tumbled in line with global trend triggered by a sharp rise in bond yields. Increasing geopolitical tension between the US and Syria aggravated the selling. Q3 GDP data which is to be released today also added volatility in the Indian market," said Geojit Financial Services HoR Vinod Nair, as reported by Business Standard.
"Although negative, mid and small caps outperformed their larger indices showing investor confidence. The market will gain momentum as the global market is expected to stabilise supported by maintaining accommodative monetary policy and a growing economy," he added.
Elsewhere in Asia, bourses closed with heavy losses while stock exchanges in Europe were also trading with losses in mid-session deals. On the other hand, the global oil benchmark Brent crude was trading 1.16 per cent lower at USD 65.34 per barrel.
Posted By: Aalok Sensharma