Farmers Movement Archive

RIL slides on Aramco deal review, triggers 1, 1 70-point sensex crash

MUMBAI: Led by a 4.4% slide in Reliance Industries after it said it would review the Aramco deal, worth about $15 billion, the sensex crashed over 1,600 points in Monday's late session, but bargain hunting at lower levels helped it to close 1,170 points off at 58,466. The day's slide was also on the back of Dalal Street's increasing fears about raging inflation globally, selling by foreign funds and rising new Covid-19 infections in some parts of Europe, stoking fears that the same could affect the current economic growth revival process globally. The day's loss was the biggest for the index in over six months. Banking and financial stocks also contributed to the slide while Bharti Airtel rallied to close nearly 4% up after it raised tariffs by up to 25%. Investors, however, are a divided lot if the government's decision to repeal the three farm bills could impact domestic business or not. The sharp sell-off also pushed to the background a report by SBI on GDP growth. The report by SBI pegged India's GDP growth during the July-September quarter, to be released on November 30, at 8.1% while for fiscal 2022 it's estimated at 9.3% to 9.6%. During the day's session, foreign funds led the slide while domestic funds supported the market. At the close of session, foreign portfolio investors (FPIs) recorded a Rs 3,439-crore net selling figure while domestic institutions were net buyers at Rs 2,051 crore, BSE data showed. Of the 30 sensex constituents, 27 ended in the red. The day's sell-off also left investors poorer by nearly Rs 6 lakh crore with BSE's market capitalisation now at Rs 264 lakh crore. The sell-off also left investors more cautious with the India VIX, the volatility index that's also considered a gauge of fear in the market, rising by 17.5%.

The Times of India

2021-11-23

Business