Sensex Wipes Out 12-Month Gains, Nifty Closes Below 8,000 Points

Since facing the double whammy of demonetisation and Trump’s victory, the BSE has lost Rs 9 lakh crore.

Indian shares declined for a sixth straight session amid concerns about the economic impact of the government’s anti-corruption steps. (Photo: Reuters)

Indian shares declined for a sixth straight session amid concerns about the economic impact of the government’s anti-corruption steps and capital outflows weighed on sentiment.

The S&P BSE Sensex dropped 1.4 percent to 25,765, wiping out all of its last 12-month gains. While the NSE Nifty is still holding on (up +0.9 percent) to its one-year gains, it closed 1.8 percent lower at 7,929. This is the 50-share index’s first close below the 8,000-mark since May this year. Both the indices are trading at their six-month lows.

Since facing the double whammy of demonetisation and Trump’s victory, the Bombay Stock Exchange has lost Rs 9 lakh crore, or $1,323 billion in market capitalisation.

(Photo Courtesy: BloombergQuint)

(Photo Courtesy: BloombergQuint)

The market breadth was abysmal at 1,348 declines, 146 advances and 42 stocks remaining unchanged.

The pressure of the cash crunch situation continued to spook the market sentiment, and the outflow of foreign funds has intensified the blow. Banks stocks which were outperforming till date in expectation of benefiting from demonetisation due to sharp increase in deposit rates have started to lose its trend due to increased concern over liquidity issue and effective leveraging of funds.”

<b> Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services (in a note) </b>

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