- Analysts attribute the impact of Crisil lowering GDP growth and weak industrial growth figures
- Metal and banking stocks sell higher, Vedanta shares fall 5.6%
Mumbai. The stock market fell sharply on Thursday. The Sensex fell 462.80 points to close at 37,018.32. During the business, it had slipped 787 points to 36,694.18. For the first time since March 14, the Sensex slipped below 37,000. The Nifty, on the other hand, lost 138 points. It ended the business at 10,980. The intra-day had lost 237 points to 10,881. However, the losses were reduced due to recovery in the last hour.
3 reasons for decline
According to analysts, the market declined due to domestic and international reasons. First, global analytical firm CRISIL has reduced the country’s GDP growth by 20 basis points to 6.9% for the current fiscal year. The sell-off in the market intensified after this estimate was released. Second, industrial growth figures have been weak. Growth in the eight core sectors declined by 0.2% in June. Its figures came on Wednesday. Third – Asian and US markets also showed weak signs. The US stock market was at a loss on Wednesday. Major Asian markets also declined on Thursday.
3% fall in metal index
23 of the 30 Sensex stocks and 38 of the 50 Nifty stocks closed down. The selling pressure was higher in metal and banking stocks. 10 out of 11 sector indices lost on NSE. The metal index fell the most to 3.13%. On the other hand, the auto index gained 0.1%.
Nifty’s top-5 losers
Nifty’s top-5 gainer
Shares of Coffee Day Enterprises fell 42% in 3 days. The stock fell 9.98% to Rs 110.95 on the BSE on Thursday. On NSE, it fell 9.98% to Rs 110.50. Trading in the stock was stopped on both exchanges as the lower circuit limit was imposed. The stock hit the lower circuit for the third consecutive day on Thursday. The stock has lost 42% in three days. With this decline, the company’s market cap on BSE has come down by Rs 1,723.16 crore to Rs 2,343.84 crore. The stock is being sold due to the case of VG Siddharth, former chairman and MD of Coffee Day. Siddharth’s body, which was missing on Monday, was found in the river on Wednesday. According to Siddharth’s letter written to the staff on 27 July, he was under pressure from the borrowers. The company on Wednesday appointed SV Ranganath as the interim chairman.
Zee Entertainment shares fall 4%
The stock closed down 4.08% at Rs 346.70 on the BSE. It finished trading at Rs 347.20, falling 3.98% on the NSE. The company informed on Wednesday that US fund Invesco Oppenheimer has agreed to buy an additional 11% stake for Rs 4,224 crore. Zee Group is selling its assets to repay the debt.