New Delhi: As the equity market plunged for the fourth day in a row, where the BSE benchmark index plummeted over 1,100 points in afternoon trade on Friday, investor wealth witnessed an erosion of a whopping Rs 5.6 lakh crore in four days.
The 30-share index cracked 1,127.58 points, or three per cent, to hit an intra-day low of 35,993.64 on Friday. It, however recovered most of the losses within minutes of the fall. There were wild swings in the market, with the BSE Sensex finally settling at 36,841.60, down 279.62 points or 0.75 per cent.
"Nifty and Sensex were down due to widespread selling that was seen in the financial services sector as credit risk emerged post-ILFS firesale and concern over its interest repayment. Yes Bank added fuel as RBI trimmed the CEO's term," said Mustafa Nadeem, CEO, Epic Research.
In four days, the index has lost 1,249.04 points. Following the weak sentiment, the market capitalisation of BSE-listed companies slumped Rs 5,66,187.15 crore to Rs 1,50,70,832 crore on Friday.
From the 30-share pack, 17 stocks ended with losses led by YES Bank, which crashed 28.71 per cent, dragging the benchmark index. Shares of housing finance firms fell sharply on Friday, with Dewan Housing Finance tumbling 42.43 per cent.
"Housing finance companies nosedived on the basis of rumours of liquidity crunch which caused the stocks to fall up to 50 per cent. However, the stocks are fundamentally sound, but herd mentality had caused the sudden panic in these stocks, however, they have recovered from their day's low," said Jimeet Modi, founder and CEO of Samco Securities & StockNote.
On BSE, 2,106 stocks declined and 586 advanced, while 148 remained unchanged. More than 450 stocks hit their 52-week low levels on Friday.
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