Stock Market Crash: Sensex Cracks Over 1,000 Points, Gives Up 59,000 Mark
Indian benchmark indices continued their losing streak for the third straight session on Friday amid a heavy selloff across all sectors. The Sensex gave up the 59,000 mark as it slipped more than 1,000 points, and the Nifty also failed to sustain 17,600, shedding more than 300 points, registering their biggest drop in three months.
The market capitalisation of BSE-listed firms slumped to Rs 279.8 lakh crore from Rs 285.9 lakh crore.
A slew of factors was at play during Friday’s trade which dented investor sentiment. Weaknesses in global markets, the anticipation of an aggressive rate hike from the US Federal Reserve next week, a selloff in index heavyweights and fear of imminent global recession led to the crash on Dalal Street.
"Indian markets were the worst performers in the Asian pack, as higher inflation and likely aggressive rate hikes by the US Fed sent stocks tumbling across the board. We are likely to see strong bouts of volatility in the coming sessions as global slowdown looms large," said Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities.
At close, the Sensex settled 1,093 points or 1.82 per cent lower at 58,840, while its broader peer, the Nifty, shed 346 points to settle at 17,530.
On the BSE, all sectors ended in red, with the IT and Realty shedding over 3 per cent. Midcap and smallcap indices shed nearly 2.5 per cent.
IT & auto stocks were significant drags, with Tech Mahindra, Infosys and M&M among the top losers on the exchanges.
On a weekly basis, the Nifty Bank index rose for the fourth consecutive week, gaining nearly 1 per cent.
"Technically, the double top formation on daily and intraday charts and bearish candle on weekly charts is indicating further weakness from the current levels. If the index trades above 17,450, then the market is likely to bounce back sharply. For the short-term traders, 17,450 would be the key level to watch out for, above which, the index could bounce back to the 20-day SMA (Simple Moving Average) 17,700 and 17,900 levels. On the flip side, below 17,450, the index could hit 17,300-17,200 levels," said Athawale.
