Sensex, Nifty erase gains made in previous three sessions; investors left Rs 1.62 lakh crore poorer

By: |
September 4, 2020 10:02 AM

Sensex and Nifty erased all gains made during the last three trading sessions as they dived over 1.5% on Friday morning.

On the opening bell State Bank of India, Kotak Mahindra Bank were the top drags on BSE Sensex.

Sensex and Nifty erased all gains made during the last three trading sessions as they dived over 1.5% on Friday morning. S&P BSE Sensex opened 593 points lower as the 30-stock index slipped well below the 39,000 mark. On the other hand, the NSE Nifty 50 gave up 11,400 levels. However, both the benchmark did trim some losses after the initial 30 minutes of trade. Financials were bleeding, as 5 of the worst performing Sensex stocks were from banking and finance space. Maruti Suzuki was the only stock to be trading with gains on BSE Sensex. Among sectoral indices, the Nifty Private Bank index was the worst performer.

Investors poorer by Rs 1.62 lakh crore: With the2 benchmarks opening with losses, investors were left poorer by Rs 1.62 lakh crore, in terms of market capitalization of all BSE-listed firms. The market capitalization of BSE firms was at Rs 156.8 lakh crore on Thursday evening. On Friday morning the same was at Rs 155.2 lakh crore.

Global cues weak: US stock markets plummeted on Thursday with the NASDAQ slipping close to 5%. Asian peers too were trading with losses on Friday morning. Hang Seng slipped close to 2%, while Nikker 225 was down 1.3% and Kospi was trading 1.5% lower.

Also Read: RIL in talks to sell $1 bln Reliance Retail stake to Silver Lake; Ambani cashing in retail after Jio?

Top drags: On the opening bell State Bank of India, Kotak Mahindra Bank were the top drags on BSE Sensex. Soon HCL Technologies took over as the worst performer. Future Retail shares were down 5% and AU Small Finance Bank was down 3%. Adani Green and Future Supply Chain solutions were the top smallcap drags.

Smallcap, Midcap indices slip: Nifty Smallcap and Midcap indices were down along with the benchmarks. However, their losses were lesser than those of the benchmark indices. The story was similar when it came to BSE Smallcap and Midcap indices. 

Technical take: “Even though we have opened with a gap down, we still need to breach 11300 on a closing basis to term this as a short term weakness for our markets. A good risk-reward trade would be to go long at current levels with a stop at 11300 and a target of 11600,” said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.

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