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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. This decline was driven by a combination of factors, including the weak performance of major companies like Reliance Industries (RIL), ICICI Bank, and State Bank of India (SBI), as well as negative sentiment stemming from a downgrade by Goldman Sachs for Vodafone Idea.
The BSE Sensex, a benchmark index for the Indian stock market, fell by over 1,000 points during the day, with 25 of the 30 Sensex components trading in the red. The decline in the Sensex was heavily influenced by the performance of RIL, ICICI Bank, and SBI, which all fell between 2% and 4% during the trading session. This negative sentiment was further amplified by the poor performance of Vodafone Idea, which experienced a staggering 14% drop in its share price. This sharp decline can be attributed to a downgrade by Goldman Sachs, which issued a target price of just Rs 2.5 for the telecom company, indicating a potential downside of 83%.
The negative trend extended to the National Stock Exchange (NSE) as well, where 1,807 of the 2,669 trading stocks declined. This included 70 stocks hitting their lower circuits and 19 reaching their 52-week lows. Sectorally, 15 of the Nifty indices traded in the red, with the only exception being the Nifty MidSmall Healthcare, which remained flat with a positive bias. The banking sector experienced particularly severe losses, with the Nifty PSU Bank index plunging 3% and the Nifty Bank index falling by over 1%. Other major laggards included the Nifty Oil & Gas, Nifty Auto, and Nifty IT, which all declined by up to 1.7%.
This significant decline in the Indian stock market highlights the fragility of the market and its susceptibility to both internal and external factors. The weak performance of major companies, negative sentiment stemming from analyst downgrades, and broader economic concerns all contribute to the overall volatility of the market. Investors will be closely watching the performance of these key indicators in the coming days and weeks to assess the direction of the market and make informed investment decisions.
Source: Over 2,400 BSE stocks slip into red, 240 hit lower circuits. Vodafone Idea tanks 14%