Mumbai: With US House Speaker Kevin McCarthy’s exit and strong employment growth figures and the continued strength of the US dollar, US bond yields rose to a 16-year high and interest rates are likely to rise on signs of a rebound in inflation. There were universal gaps. HDFC Bank and FMCG heavyweight Nestlé, after falling 633.33 points to a low of 64,878.77 at one point, saw heavy hammering by funds in banking-finance stocks along with State Bank and private bank stocks and metal-mining stocks as well as automobile, capital goods stocks. India, Hindustan Unilever, including Levali, digested the decline and finally closed down by 286.06 points to close at 65226.04. While the Nifty spot fell by 195.15 points to 19333.60 and finally closed down 92.65 points to 19436.10.
In banking stocks, bankex fell by 666
Funds in banking-finance stocks were heavily sold off today on fears of a global financial crisis and the Reserve Bank of India’s monetary policy review meeting, which is likely to remain unchanged this time, with inflation expected to signal an interest rate hike in the coming days. The BSE Bankex index lost 665.67 points to close at 49342.10. Axis Bank fell by Rs.45.60 to Rs.994.40, Canara Bank fell by Rs.11.35 to Rs.373.10, State Bank of India fell by Rs.17 to Rs.585.95.
Continued offloading in auto stocks
BSE Auto fell 395.66 points to close at 35788.47 as funds sold massively for the second day in a row in automobile company stocks. Motherson Sumi fell by Rs.3.02 to Rs.92.75, Ashok Leyland fell by Rs.4.60 to Rs.173.05, TVS Motor fell by Rs.33.40 to Rs.1496.55, Bajaj Auto fell by Rs.97.70 Rs 4,908, shares fell Rs 196.50 to Rs 10,144.40, MRF fell Rs 1,223.70 to Rs 1,06,937, Tata Motors fell Rs 196.50 to Rs 10,144.40 for the second day in a row on reports of Rs 2,100 crore notice from IT. Rs.6.80 decreased to Rs.613.50.
Capital goods index fell by 639 points
In capital goods stocks, the BSE Capital Goods Index lost 639.11 points to close at 47570.01 after heavy offloading by funds. Praj Industries fell by Rs.18.95 to Rs.579.75, CG Power fell by Rs.13.20 to Rs.431.40, BHEL fell by Rs.3.55 to Rs.127.55, LG Equipment fell by Rs.12.75 to Rs. .502.15 remained.
DII’s purchase of Rs.1769 crore in shares
Foreign Portfolio Investors – FPIs, FIIs had a net sale of stocks worth Rs.4424.02 crore in cash today-Wednesday. A total of Rs.14,272.57 crore was sold against a total purchase of Rs.9848.55 crore. While DII-domestic institutional investors had a net purchase of Rs.1769.49 crore shares. A total of Rs.8280.59 crore was sold against a total purchase of Rs.10,050.08 crore.
Investors’ wealth fell by Rs.2.55 lakh crore
Investors’ wealth i.e. aggregate market capitalization of BSE listed companies fell by Rs 2.55 lakh crore to Rs 316.66 lakh crore in one day due to wide gaps in the stocks today.
Gaps in Asian markets
Gaps were seen in the global markets due to the impact of the US crisis. In the markets of Asia-Pacific countries, Japan’s Nikkei 225 index fell by 711.06 points to 30526.66, Hong Kong’s Hang Seng fell by 135.36 points to 17195.84, and China’s CSI fell by 11 points to 3689. There was a modest recovery in European markets.