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SenSex Plunge 430 Points

Fag-end selling in domestic equity market wiped off nearly Rs 2 lakh crore in investor wealth on Tuesday. The BSE Sensex tanked 429.58 points, or 1.27 per cent, to 33,317.20, while NSE index Nifty50 plunged 109.60 points, or 1.06 per cent, to 10,249. 

Market capitalisation of BSE-listed companies plunged to Rs 144 lakh crore today from Rs 146 lakh crore in the previous session. 

“Reports suggesting that SFIO summoned bankers, including chiefs of ICICI Bank and Axis  .. 

Here are five key factors that weighed on the indices on Tuesday. 

SFIO summons top bankers: Heavy selling in bank stocks dampened market mood. State Bank of India plunged over 3 per cent in the late afternoon trade. ICICI Bank and HDFC BankBSE -1.07 % dropped 2 per cent and 1 per cent, respectively. 

The Serious Fraud Investigation Office (SFIO) has summoned top bankers, including ICICI Bank CEO Chanda Kochhar and Axis Bank CEO Shikha Sharma, in  in a case related to Rs 5,000 crore loan extended to Mehul Choksi’s Gitanjali Gems. 

The SFIO is said to have summoned senior executives from 31 banks with business dealings with the firms promoted by Nirav Modi and Choksi, PTI reported. 

Trade war escalates: Trump's proposal for steep import duties (up to 25 per cent) on imported steel and aluminium will in all likelihood set the stage for retaliatory action by big trading partners. The chairman of the European Parliament's international trade committee says the EU should target American goods  .. 

Valuations still high: The stock market valuation is still too high and fundamentals need to catch up with them, said a top NSE official. 

“Fundamentals need to certainly catch up with the valuations. So, my hope is corporate earnings and GDP growth over the next few quarters will improve and catch up with the valuations,” Vikram Limaye, Managing Director and Chief Executive Officer of NSE, told IANS. 

Deteriorating macros: Deteriorating state government finances pose a risk to India, which already runs the second-largest budget deficit among major economies, Oxford Economics said in a note. The report further put pressure on Indian equity markets. 


FII selloff continues: Sustained selling by foreign portfolio investors (FPIs) further weighed on domestic equity indices. FIIs have offloaded equities worth of over Rs 1,200 crore in March so far. They had sold shares worth of Rs 11,037 crore in February. 

The News has been taken from Economic Times . 

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