Mumbai, July 8: The benchmark indices took a huge plunge today. Throughout the day, both Sensex and Nifty kept trading in the red. Sensex nosedived 900 points but marginally recovered towards the end of the day to end at 38,720.57, down 792 points or two percent. According to an Economic Times report, more than Rs five lakh crore of equity investor wealth got wiped out in the last two sessions due to panic selling by the investors, who reacted nervously post the Budget. Markets Dive On Budget 2019; Sensex Closes 400 Points Down At 39,513, Nifty 135 Points Lower At 11,811.
The markets plunged dragged by losses in HDFC twins, L&T and RIL stocks, amid a heavy selloff in global equities. Index heavyweights HDFC Bank, L&T, ICICI Bank, SBI, Bajaj Finance, Kotak Mahindra Bank and Axis Bank together wiped out around 400 points from the Sensex during the first half on Monday. According to reports, the selloff was so intense that companies like Hero MotoCorp, PNB, Indian Oil Corporation, and Dilip Buildcon witnessed their biggest fall of the year, whereas Bajaj Finance and Bank of India saw their second biggest fall in a year.
On Friday, while the Union Budget speech was on, the markets were on a volatile mode. But after the speech ended, the markets nosedived. Investors have been highly disappointed with the Union Budget and they feel it dented the market sentiment. The Rupee opened lower at 68.57/$ vs Friday's close of 68.42 against the US dollar.