₹6 lakh crore wiped off: Markets slide for third straight day

Broad selloff hits Indian stocks on May 20 amid global jitters, stretched valuations
Stock market
Pic: Mint
Updated on
3 min read

The Indian stock markets extended their losing streak to a third consecutive session on May 20, with benchmark indices tumbling over 1% each. The Sensex dropped 873 points to close at 81,186.44, while the Nifty 50 slipped 262 points, ending the day at 24,683.90. Market participants pointed to a combination of weak global cues, valuation worries, and lack of fresh positive triggers weighing on investor sentiment.

The mood was sombre across the board, with both midcap and smallcap stocks feeling the heat. The BSE Midcap index lost 1.65%, and the Smallcap index declined by 0.96%.

₹6 Lakh crore gone in a day

The cumulative market capitalisation of BSE-listed companies took a hit, falling to nearly ₹438 lakh crore from around ₹444 lakh crore in the previous session. That’s roughly ₹6 lakh crore worth of investor wealth wiped off in just one trading day.

So, why the fall?

Market analysts say a mix of domestic and global worries seem to be at play. Concerns over the slow progress in the India–US trade deal, uncertain global economic cues, and high stock valuations have prompted investors to tread cautiously.

Some also believe foreign investors may be taking money off the table, at least for now, especially in the absence of any strong buying triggers. The US economy’s fiscal health continues to spark uncertainty, and that hasn’t helped either.

Vinod Nair of Geojit Investments said that “lack of major positive triggers” and “delays in the trade deal” may push the market into a short-term consolidation phase. He added that FIIs could scale back their bets amid these concerns.

A few shine in the red sea

Only a handful of Nifty 50 stocks managed to stay afloat. Coal India rose by 1.55%, Tata Steel edged up 1.28%, and Hindalco Industries gained 1.16%, defying the broader trend.

Auto, FMCG stocks take a hit

Out of the 50 Nifty stocks, 42 ended in the red. The worst performers included Eicher Motors (down 4.21%), Hero MotoCorp (down 3.16%) and Bajaj Auto (down 2.84%).

All sectoral indices ended the session in negative territory. Nifty Auto sank more than 2%, while FMCG, Media, Pharma, Realty, and Private Banks each declined over 1%. Nifty Bank dipped by 1%, and the Financial Services index fell by 1.2%.

High volumes but not much cheer

In terms of trading volume, Vodafone Idea stood out with 86.52 crore shares changing hands, followed by Easy Trip Planners (20.87 crore) and YES Bank (11.6 crore).

Some stocks still made big moves

Interestingly, seven stocks on the NSE jumped more than 15%, including Tatva Chintan Pharma, Alkali Metals, Kapston Services, and Honda India Power Products. On the flip side, Ganesh Benzoplast crashed over 15%, marking the steepest fall of the session.

Upper and lower circuits in focus

Market action was particularly intense in the broader segment. As many as 117 stocks hit their upper circuit during intraday trade — among them were Newgen Software, Zen Technologies, KPI Green Energy, and Raymond.

Meanwhile, 55 stocks such as Unitech, Kore Digital, and Parin Enterprises hit their lower circuits, reflecting the nervousness in the broader market.

Advance-decline ratio

The NSE had 915 stocks in the green, while 1,974 declined and 80 remained unchanged. The broader trend was clearly tilted towards the bears.

52-week highs and lows

Despite the overall decline, 82 stocks on the BSE hit their 52-week highs, including names like Shree Cement, Dalmia Bharat, and APL Apollo Tubes. On the other hand, 29 stocks touched their 52-week lows, with Aether Industries and Jai Balaji Industries among them.

(By arrangement with Livemint.com)

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