Sensex dropped over 1,300 points this week on weak global cues
Four straight sessions of losses pulled down the benchmark Sensex from 60,077.88 on Monday to 58,765.58 on Friday, the biggest weekly loss in over five months
- Oct 2, 2021,
- Updated Oct 2, 2021 4:22 PM IST
A correction was always looming in the Indian stock markets as the benchmark indices were touching new highs on a weekly basis and were among the best performing markets globally.
While market participants have been advising investors to be cautious for long, the markets kept on surging northwards riding on the back of global and domestic liquidity. After witnessing a kind of one-way rally, the markets this week did face turbulence and saw a significant amount of correction.
The week started on a strong note as the benchmark Sensex touched a new intra-day high of 60,412.32 on Monday before closing at a record 60,077.88. That was, however, the only day of gain for the benchmarks during the week.
Also Read: Paras Defence makes stellar market debut, share lists at 171% premium to IPO price
The next four consecutive sessions saw the Sensex and the broader Nifty end in the red with the 30-share Sensex losing over 1,300 points - 1,312 points to be precise - to end the week below the 59,000-mark at 58,765.58.
On Friday the Sensex lost 0.61 per cent or 360.78 points while the Nifty settled the day at 17,532.05, down 86.10 points or 0.49 per cent. As many as 18 stocks in the Sensex pack ended in the red with constituents like HDFC, ICICI Bank, HDFC Bank, TCS, Bajaj Finance, Infosys and Bajaj Finserv contributing the most to the day's losses.
Market participants are attributing the downswing to weak global cues as concerns appear to be escalating over rising inflation and slowing economic growth. Inflation in the Eurozone region hit a 13-year high in September primarily driven by rising energy prices.
They further add that if global cues continue to remain weak, then Indian markets would consolidate or trade in a range-bound manner even as valuations have seen a huge run-up as stocks and indices hovered around record levels till early this week.
Also Read: SEBI gives go-ahead to Gold Exchange, Social Stock Exchange -- all you need to know
Meanwhile, Friday saw a strong debut by Paras Defence and Space Technologies even as the overall market sentiment remained subdued.
On BSE, the stock made its debut at Rs 475 - a huge premium over its issue price of Rs 175 - before touching a high of Rs 498.75. It finally settled the day at Rs498.75.
The week also saw the initial public offer (IPO) of Aditya Birla Sun Life AMC, which got subscribed 5.24 times with bids received for 14.6 crore shares as against 2.8 crore shares on offer in the price band of Rs 695 and Rs 712.
While the portion reserved for institutional investors was subscribed 10.36 times, the segments reserved for retail and high net worth investors were subscribed 3.24 times and 4.39 times, respectively, as per information on the BSE website.
A correction was always looming in the Indian stock markets as the benchmark indices were touching new highs on a weekly basis and were among the best performing markets globally.
While market participants have been advising investors to be cautious for long, the markets kept on surging northwards riding on the back of global and domestic liquidity. After witnessing a kind of one-way rally, the markets this week did face turbulence and saw a significant amount of correction.
The week started on a strong note as the benchmark Sensex touched a new intra-day high of 60,412.32 on Monday before closing at a record 60,077.88. That was, however, the only day of gain for the benchmarks during the week.
Also Read: Paras Defence makes stellar market debut, share lists at 171% premium to IPO price
The next four consecutive sessions saw the Sensex and the broader Nifty end in the red with the 30-share Sensex losing over 1,300 points - 1,312 points to be precise - to end the week below the 59,000-mark at 58,765.58.
On Friday the Sensex lost 0.61 per cent or 360.78 points while the Nifty settled the day at 17,532.05, down 86.10 points or 0.49 per cent. As many as 18 stocks in the Sensex pack ended in the red with constituents like HDFC, ICICI Bank, HDFC Bank, TCS, Bajaj Finance, Infosys and Bajaj Finserv contributing the most to the day's losses.
Market participants are attributing the downswing to weak global cues as concerns appear to be escalating over rising inflation and slowing economic growth. Inflation in the Eurozone region hit a 13-year high in September primarily driven by rising energy prices.
They further add that if global cues continue to remain weak, then Indian markets would consolidate or trade in a range-bound manner even as valuations have seen a huge run-up as stocks and indices hovered around record levels till early this week.
Also Read: SEBI gives go-ahead to Gold Exchange, Social Stock Exchange -- all you need to know
Meanwhile, Friday saw a strong debut by Paras Defence and Space Technologies even as the overall market sentiment remained subdued.
On BSE, the stock made its debut at Rs 475 - a huge premium over its issue price of Rs 175 - before touching a high of Rs 498.75. It finally settled the day at Rs498.75.
The week also saw the initial public offer (IPO) of Aditya Birla Sun Life AMC, which got subscribed 5.24 times with bids received for 14.6 crore shares as against 2.8 crore shares on offer in the price band of Rs 695 and Rs 712.
While the portion reserved for institutional investors was subscribed 10.36 times, the segments reserved for retail and high net worth investors were subscribed 3.24 times and 4.39 times, respectively, as per information on the BSE website.