The Sensex, India s headline equity index, has experienced a sharp decline, losing over 1,600 points in just three days. This has resulted in investors losing approximately Rs 4 lakh crore. The market capitalization of all companies listed on the BSE has also fallen to Rs 319.5 lakh crore. The decline in the market is attributed to factors such as the US Federal Reserve s decision to project an interest rate hike, rising bond yields, a stronger dollar, higher crude oil prices, expensive valuations, foreign institutional investor selloff, and technical factors.
From the Sensex pack, HDFC Bank, Tech Mahindra, Tata Steel, Bharti Airtel, and Infosys opened with losses, while ICICI Bank, Power Grid, L&T, IndusInd Bank, Axis Bank opened with gains.
Shares of Adani Ports opened over 3% lower after auditing firm Deloitte resigned as its auditor. Deloittes resignation comes after it asked Adani Ports to conduct an independent inquiry on related party transactions flagged by Hindenburg. But the company did not agree to take the auditing firm s advice.
While Fitch s statement had nothing new to offer as it is a well-known fact that developed market governments are getting more indebted, the downgrade of US rating to AA+ from AAA is seen as being sentimentally negative for riskier assets.