Indian equity benchmarks extended decline for fourth straight session on Monday with Nifty and Sensex dropping the most since April 12, at the day’s lowest levels, as investor sentiment was shaken after weak listing of the country’s biggest-ever Paytm’s IPO. Roll back of three farm laws along with continuous selling by foreign institutional investors also added to the heightened volatility on Dalal Street, analysts said. The Sensex fell as much as 2.72 per cent or 1,624 points and Nifty 50 index briefly dropped below its important psychological level of 17,300.
The Sensex dropped 1,170 points to close at 58,466 and Nifty 50 index tumbled 348 points to end at 17,416.
“Weak listing of Paytm’s shares and subsequent selling on second day and roll back of farm reform laws over the weekend spooked investors,” AK Prabahakar, head of research at IDBI Capital told NDTV over the phone.
Reliance Industries was top drag on the Sensex, the decline in stock alone added over 300 points to fall in the 30-share index. Reliance Industries came under selling pressure after country’s largest firm decided to halt a stake sale in its oil-to-chemicals business (O2C) to Saudi Arabia’s Aramco and pulled back from a potential spinoff of its most profitable unit. The stock ended xx per cent lower at Rs XXXX.
Paytm’s market capitalisation or its market value dropped by as much as Rs 56,233 crore after its disastrous market debut on Thursday, November 18, data from the BSE showed. Paytm shares have crashed as much as 40 per cent from its IPO price to hit low of Rs 1,283 in just two trading sessions. Analysts have pointed at high valuations as the reason behind the spiraling downfall in the stock price.