India’s equity benchmark extended its declines for a fourth straight session on Monday with Nifty and Sensex dropping the most since April 12, at their lowest intraday, driven by investor sentiment Investments were shaken after the weak listing of the IPO of the largest Paytm in the country. The rollback of the three farm laws coupled with continued selling by foreign institutional investors also added to the sharp volatility on Dalal Street, analysts said. Sensex fell as much as 2.72% or 1,624 points and the Nifty 50 index dipped below the psychologically important 17,300 level for a short time.
The Sensex dropped 1,170 points to 58,466 and the Nifty 50 index fell 348 points to 17,416.
AK Prabahakar, head of research at IDBI Capital, told NDTV by phone: “Paytm’s share listing was weak and the sell-off followed on Monday and rollback of the farm reform laws at the end. week has spooked investors.”
Reliance Industries is the force leader on Sensex, the stock drop alone adds more than 300 points to the 30-stock index. Reliance Industries has come under selling pressure after the country’s largest company decided to stop selling a stake in its oil-chemical (O2C) business to Saudi Arabia’s Aramco and pull out of a sale potential distribution of their most profitable unit. Shares ended xx% lower at XXXX Rs.
Paytm’s market capitalization or market value has dropped to Rs 56,233 crore after a disastrous market launch on Thursday, November 18, data from BSE shows. Shares of Paytm have dropped as much as 40% from its IPO price to a low of Rs 1,283 in just two trading sessions. Analysts have pointed to high valuations as the reason behind the stock’s continued decline.
