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Last Updated : Jul 08, 2019 10:33 PM IST | Source: Moneycontrol.com

Sensex witnesses 15th biggest single day fall in last 2 decades

The index closed at 38,720.57 while the Nifty50 lost 252.60 points to 11,558.60, the lowest level since May 17, 2019.

Sunil Matkar @moneycontrolcom

The BSE Sensex saw a massive 793 points fall on July 8, the 15th biggest decline in a single day since 2000.

The index closed at 38,720.57 while the Nifty50 lost 252.60 points to 11,558.60, the lowest level since May 17, 2019.

The correction in global peers after diminishing hope for interest rate cut by Federal Reserve due to strong US jobs data, the latest scam detected at Punjab National Bank (PNB) and a dismal by Budget 2019 -- suggesting a slowdown in the economy -- dampened market sentiments.

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On July 8, the 30-share BSE Sensex saw a biggest single day fall since October 4, 2018 when it corrected 806.47 points. On February 2, 2018, it fell by 840 points.

July08-Graph

Proposals in the budget on increasing minimum public shareholding levels to 35 percent was a dampener along with 20 percent tax on share buy-back and additional surcharge on those earning over Rs 2 crore.

"We also had more negative news in terms of cut in vehicle production announced by Maruti, deficit monsoons and reduction in area sown in Kharif crops, in an environment of continuing farm distress and weak demand for consumer products. All these added to the fact that there were no immediate measure that was announced in the budget which could kick-start consumption and related economic activities," Pradeep Kesavan, Senior VP, Equity Strategy, Institutional Equities at Elara Capital told Moneycontrol.

He said with valuations not particularly cheap any more, all these factors weighed heavily on the market and precipitated a fall.

Ajit Mishra, Vice President, Research at Religare Broking advises maintaining sell on rise and opting for hedged positions.

More than Rs 3 lakh crore worth of investors' wealth eroded on July 8. Even foreign institutional investors (FIIs) turned net sellers to the tune of Rs 401.99 crore, taking the total net selling to around Rs 3,500 crore in the month, while DIIs net bought around Rs 1,000 crore worth of shares in July.

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First Published on Jul 8, 2019 10:26 pm
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