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Investors lose Rs 4.5 lakh crore as tension on India-China border halts six-session rally

The fall in market cap today surpassed Rs 3.82 lakh crore gain investors clocked in six previous sessions

Aseem Thapliyal | August 31, 2020 | Updated 17:59 IST
Investors lose Rs 4.5 lakh crore as tension on India-China border halts six-session rally
Sensex, which was set to close higher for the seventh straight session, witnessed panic selling as reports of India-China border tensions in Ladakh region emerged.

Investors lost Rs 4.56 lakh crore today as fresh round of border tensions between India and China spooked domestic equity market. Market cap on BSE fell to Rs 153.76 lakh crore compared to market cap on August 28 at Rs 158.32 lakh crore. The fall in market cap today surpassed gains investors clocked in six previous sessions. Investors gained Rs 3.82 lakh crore in six sessions on BSE.

Sensex, which was set to close higher for the seventh straight session, witnessed panic selling as reports of India-China border tensions in Ladakh region emerged. In morning session, the index rose to 40,010, a gain of 543 points from the previous close of 39,467.

In afternoon session, the index slipped into red and fell 1,615 points intra day from day's high to 38,395. Similarly, Nifty gained 147 points intra day to hit a high of 11,794 but succumbed to panic selling and hit an intra day low of 11,325. The index saw fall of 469 point from the day's high.

Erasing gains in afternoon session, Sensex closed 839 points or 2.13% lower at 38,628 and Nifty fell 260 points or 2.23% to 11,387. On Sensex, 28 stocks closed in the red. TCS and ONGC were the only gainers.

Sun Pharma, Bajaj FinServ and SBI were the top Sensex losers today falling up to 7.34%. Market breadth was negative with 536 stocks ending higher against 2,329 shares ending lower on BSE.  150 stocks were unchanged. Mid cap and small cap indices closed 576 and 654 points lower on BSE.

Share Market Highlights: Sensex ends 839 points lower, Nifty at 11,387; Bajaj Finserv, Sun Pharma top losers

Aamar Deo Singh, Head Advisory at Angel Broking said, "Markets witnessed a sharp correction today, on the back of geopolitical tensions between China and India. Further, ahead of the Q1 GDP numbers and implementation of the new margin norms kicking in from tomorrow, profit booking was witnessed. It was a sell-off across the board with declines outnumbering advances by more than 3:1. Overall, today's high now should act as a key resistance going forward with support for Nifty seen around the 11200-11300 zone."

Banking stocks led the losses with BSE bankex losing 918 points to 26,972 against previous close of  27,891. BSE healthcare index slipped 891 points to 18,387. All 19 BSE sectoral indices closed in the red. Bank Nifty too fell 769 points or 3.14% to 23,754.

India-China border row: Chinese troops increase foothold in Pangong Tso area

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