Mumbai: It was a ‘Black Friday’ in its true sense for the Indian investors on November 25 as they lost Rs 7 lakh crore of their wealth in a single day. The market declined nearly 3% with BSE Sensex falling by 1,687.9 points and Nifty shedding 509.8 points.
This was the third biggest single-day fall of the year 2021. The markets were witness to their worst fall of this year on February 26, when the Sensex had lost 1,939.32 points.
The markets have been in a correction mode since they touched their peaks as various global factors are inhibiting any further rise.
The domestic market has corrected nearly 9% from its peak as weak global cues, persistent selling by FIIs, and premium valuation has made investors cautious.
The markets witnessed intense selling pressure today from FIIs which the DIIs were not able to match with their purchases.
The rising inflation is inducing the Fed to taper bond purchases and implement an early hike in interest rates even before it concludes the tapering of bond purchase. These developments have strengthened the US dollar to a certain extent, and also prompted exit from emerging markets by FPIs.
“As COVID risks rise, the dollar continues to strengthen, foreign investors started moving their money back to the US”, commented Mohit Nigam, Head – PMS at Hem Securities.
The Volatility index was up by 24.85% and except Nifty Pharma and Nifty Healthcare, all other sectoral indices ended in the red. Top gainers included Cipla – Rs 965.0 (+7.23%), Dr. Reddy’s – Rs 4,750.0 (+3.45%) and Divi’s Labs – Rs 4,940.0 (+2.92%) while JSW Steel – Rs 630.0 (-7.48%), Tata Motors – Rs 459.4 (-6.77%) and Hindalco – Rs 417.7 (-6.57%) were the biggest losers.