Mayhem in Stock Market as Nifty Dives Below 23k
Equity market. Image credit X.com
Stock Market Bloodbath Smashes ‘Hope Stocks’
By S Jha
New Delhi, January 27: Stock markets are witnessing absolute mayhem with an all-round rout in stocks. Nifty dived below 23000 level while Sensex was trading with a cut of over 750 points on Monday morning.
Nifty went down by over 250 points after first two hours of trade. The shares of ICICI bank averted a big fall in the Bank Nifty. The Banking index was trading with loss of almost 300 points.
A large number of small and midcap shares were locked in the lower circuit. There were no buyers in such scrips.
The 50-share index Nifty finally breached the resistance of 23000 after days of stock market crashes. On September 26 last year, Nifty had scaled to the peak of 26216.
Since the onset of selloff by the foreign institutional investors (FIIs) from September, Nifty has lost a whopping 2400 points. The 12-month gain of Nifty is now reduced to just over five per cent. The FII selloff has now become torrential with January alone exceeding dumping to the tune of over ₹60,000 crores.
The rout in the stock market can be gauged from mayhem in ‘Hope Stocks’. Investors call shares of companies ‘Hope Stocks’ which have futuristic themes.
Shares of Waree Renewable were trading at a price of ₹₹886 on Monday. It had sunk to the level of ₹856 on Monday morning with a loss of over nine per cent. Not long ago, the shares of Waree Renewable were trading at ₹2734, on May 3 last year.
Shares of Waree Renewable are one of the ‘Hope Stocks’, which has now become a case of ‘pump and dump’. Shares of Jupiter Wagons, another Hope Stock riding on the rail theme, were trading at ₹403 after crashing from the high of ₹700, which was seen a few months ago.
Slowing GDP Growth, Falling Rupee Worry Stock Market Investors
Even the defensive stocks have gone under the hammer. The pharmaceutical intermediary manufacturer Lauras Laboratories crashed by over 12 per cent on Monday. The shares of Lauras Laboratories were trading at ₹527 on Monday.
The telecom sector is leading the fall in the stock markets on Monday. The telecom index crashed by almost four per cent on Monday. Tejas Networks, a 4G player, crashed by almost nine per cent to trade at ₹900 on Monday. The Tata-owned scrip has lost over 30 per cent within a span of a few days.
The shares of IT stocks were also bleeding. The shares of Newgen Software, a multibagger of recent time, was locked in a 10 per cent lower circuit.
(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)
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