Nov 22, 2021
By: bhakti.makwana@timesinternet.in
Credit: BCCL
Credit: BCCL
Sensex crashed below 59,000 points for the first time in nearly two months on November 22 led by fall in Reliance Industries (RIL), Bajaj Finance, Tata Motors, State Bank of India (SBI) and others.
Credit: BCCL
The big fall in Sensex was mainly because of a dip in shares of heavyweight Reliance Industries, which has a weightage of 12 percent on the 30-stock benchmark index.
Credit: BCCL
RIL slipped after the much anticipated deal between RIL and Saudi Aramco was put on hold. Apparently, both companies have decided to re-evaluate the proposed investment of Saudi Aramco in the oil-to-chemical conglomerate.
Credit: BCCL
Apart from this, sudden outbreak in COVID-19 cases in European countries and increasing inflationary pressures kept the market under pressure.
Credit: BCCL
Global brokerage firm Morgan Stanley believes Sensex may hit 80,000 by December 2022 helped by a likely new profit cycle.
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Data by Value Research showed that 168 stocks in the market were nearing their 52-week low after Monday’s huge market fall.
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70 percent of the overall stocks listed in BSE were in red i.e., 2,497 stocks.
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All the sectors including auto, banks, fast moving consumer goods (FMCG), metals and pharma were bleeding as the market feared inflation and rising COVID-19 cases globally.
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“The weak listing of India’s largest IPO [initial public offering], Paytm, further impacted domestic sentiment. Going forward, rising inflationary pressure will continue to haunt global markets as fears of rate hikes will pump out liquidity from emerging markets like India,” reportedly said Vinod Nair, head of research at Geojit Financial Services.
Credit: BCCL