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The Indian stock market experienced a significant downturn on Friday, with over 2,400 stocks listed on the Bombay Stock Exchange (BSE) falling, resulting in a loss of Rs 5 lakh crore for investors. The decline was driven by a combination of factors, including a bearish sentiment fueled by global economic uncertainties, as well as specific concerns about certain companies. One of the most notable casualties was Vodafone Idea, whose share price plummeted by 14% after global brokerage firm Goldman Sachs issued a downgrade with a target price of just Rs 2.5, signaling a potential downside of 83% from its current valuation. This sharp drop was attributed to concerns about Vodafone Idea's financial health and its ability to compete in the increasingly competitive Indian telecom market.
The broader market sentiment was also reflected in the performance of the benchmark indices. The BSE Sensex fell by over 1,000 points, with prominent contributors to the decline being Reliance Industries (RIL), ICICI Bank, and State Bank of India (SBI). These companies saw intraday declines ranging from 2% to 4%. The Sensex breadth remained heavily skewed towards bears, with 25 of the 30 stocks in the index trading in the red by around 2 pm. Other major losers included Oil India and Uno Minda, which saw falls of up to 14%.
The National Stock Exchange (NSE) also witnessed a similar trend, with 1,807 declines out of the 2,669 stocks that were trading. Among these, 70 stocks hit their lower circuits, while 19 hit their 52-week lows. Sectorally, 15 Nifty indices were trading in the red, with the only exception being Nifty MidSmall Healthcare, which remained flat but with a positive bias. Banks were the biggest underperformers, with Nifty PSU Bank plunging by 3% and Nifty Bank down by over 1%. Other major laggards included Nifty Oil & Gas, Nifty Auto, and Nifty IT, which fell by up to 1.7%. The overall market performance reflects a growing sense of caution among investors, who are increasingly wary of geopolitical risks, inflationary pressures, and potential economic slowdowns. While the immediate future of the market remains uncertain, it is clear that investors will need to closely monitor developments both domestically and globally to navigate the volatile market conditions.
Source: Over 2,400 BSE stocks slip into red, 240 hit lower circuits. Vodafone Idea tanks 14%