Indian financial markets witnessed a bloodbath today hence again proving the ‘Black Friday’ fiasco in relation to the markets. Both the benchmark indices shed their gains of previous four straight trading sessions of bull run in a single trading session today tracking weakness in the Rupee. The sharp selloff in the market is on account of unwinding of positions by foreign funds, as FIIs are increasingly witnessing erosion of wealth due to continuous slide of the Rupee to historic lows virtually every week. As per market experts, with losses mounting because of Rupee weakness, FIIs have been forced to book their losses.
Nifty continued witnessing intense selling pressure from the start of the day and briefly breached 5,500 level as institutional investors booked profits and fell down by 234.45 points or -4.08% and ended the day at 5507.85. Sensex also snapped its past four-day winning streak and tanked by 769.41 points and closed at 18598.18 down by -3.97%.
Today's selloff, however, was triggered by the RBI's latest move to defend the Rupee announced on Wednesday about restrictions of how much its citizens and companies can invest abroad to reduce pressure on the Rupee. But, traders fear the capital restrictions could adversely impact company profits and could lead to stronger capital restrictions that would scare off foreign investors at a time when the expected tapering of U.S. monetary stimulus is already creating uncertainty in emerging markets.
All the sectoral indices faced the wrath of the market and led by rate sensitives towards the center of the earth. CNX Realty was the biggest loosing indices with -6.66% and followed by Bank Nifty (-5.74%), CNX Metal (-5.47%), CNX PSU Bank (-5.38%), CNX Finance (-5.27%), CNX PSE (-4.67%), CNX Commodities (-4.55%) and CNX Infra (-4.51%).
Market breadth remain completely one-sided today in negative terrain with only 190 stocks advancing as against 997 stocks decline on NSE with 54 stocks remaining unchanged.
Out of 50 stocks of Nifty 3 stocks advanced against 47 declined.
Top 5 Nifty gainers: There were only three stocks advancing in Nifty with Hero Moto Corp. (2.17%) gaining the most and joined by Power Grid (1.13%) and HCL Technologies (0.20%).
Top 5 Nifty losers: J P Associates topped the losers chart by registering loss of -11.09% and followed by BHEL (-10.92%), Axis Bank (-9.36%), Bank of Baroda (-8.63) and Reliance Infra (-8.52%).
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