Small, midcap pummeled; investors lose Rs 13.5 lakh crore in a day

MUMBAI: Equity benchmark index Sensex on Wednesday crashed over 900 points to sink below the 73,000 level due to widespread selling pressure amid a sharp fall in smallcap and midcap indices.

Besides, deep losses in utility, energy and metal stocks and recent selling by foreign investors added to the gloom, analysts said.

Benchmark indices started the session on a positive note, but the selling intensified during afternoon trade, with all sectoral indices ending in the red. The 30-share index tanked 906.07 points or 1.23 per cent to settle at 72,761.89, while Nifty plummeted 338 points or 1.51 per cent to 21,997.70.

Power Grid was the biggest loser in the Sensex pack, sliding over 7 per cent, followed by NTPC, Tata Steel, Tata Motors, JSW Steel, Bharti Airtel, Titan, Reliance Industries and Hindustan Unilever. In contrast, ITC, ICICI Bank, Kotak Mahindra Bank, Nestle, Bajaj Finance and HDFC Bank were the gainers.

The BSE smallcap gauge tanked by 5.11 per cent, while the midcap index declined by 4.20 per cent. A total of 3,516 stocks declined, while 400 advanced and 60 remained unchanged on BSE.

All the indices ended in the red, with utilities tumbling 7.21 per cent, metal dropping by 5.75 per cent, services (5.71 per cent), telecommunication (5.45 per cent), oil & gas (5.16 per cent), commodities (4.28 per cent) and industrials (4.23 per cent).

Industry veteran Uday Kotak said there may be some “early froth”, and it may be a “little bubbly” but the markets are not out of control. The statement comes two days after Sebi chairperson Madhabi Puri Buch said that there were pockets of froth in the small and mid-cap stocks, and the regulator was looking into the same to come out with a possible consultation paper.

The heavy selling left investors poorer by Rs 13.47 lakh crore in a single day on Wednesday, even as the market capitalisation of BSE-listed companies eroded by Rs 13,47,822.84 crore to Rs 3,72,16,602.67 crore.

Uday Kotak said there may be some early froth but the markets were not out of control