Sensex Today Tanks 906 Points | BSE Smallcap Index Slides 5% | 3 Reasons Why Indian Share Market is Falling

Wed, 13 Mar Closing

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   10:30 am   

After opening the negative note, Indian share markets continued the downtrend as the session progressed and ended the day weak.

Bears prowled on Dalal Street on Wednesday, March 13, with the benchmark S&P BSE Sensex and Nifty50 indices falling over 1% in intraday trade today.

At the closing bell, the BSE Sensex stood lower by 906 points (down 1.2%).

Meanwhile, the NSE Nifty closed lower by 338 points (down 1.5%).

ITC, ICICI Bank and HCL Tech were among the top gainers today.

Coal India, NTPC and Adani Ports on the other hand, were among the top losers today.

For a comprehensive overview of key players in the financial sector, check out list of Fin Nifty Companies.

The GIFT Nifty ended at 22,080 down by 377 points.

For impact of the Bank Nifty companies and comprehensive overview of the index, check out Equitymaster's Bank Nifty Companies list.

Broader markets ended the day lower. The BSE Mid Cap ended 4% lower and the BSE Small Cap index ended 5% lower.

Sectoral indices are trading negative with socks realty sector, power sector and telecom sector witnessing most selling pressure.

Shares of TCS, Colgate and Intellect Design hit their respective 52-week highs today.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

The rupee is trading at 82.86 against the US$.

Gold prices for the latest contract on MCX are trading flat at Rs 65,980 per 10 grams.

Meanwhile, silver prices are trading 0.2% higher at Rs 73,963 per 1 kg.

Here are three reasons why Indian Markets are falling today

#1 Broader Markets Selling

Market regulator Securities and Exchange Board of India (Sebi) has been scrutinizing flows into mid, and small-cap stocks amid a massive rally in the segment over the past few years.

The regulator has observed signs of manipulation at both the trading and issuance levels in the small and midsize enterprise (SME) space.

#2 Profit Booking

26 of 30 Sensex stocks, and 46 of 50 Nifty stock were reeling under pressure on Wednesday. PowerGrid, and Adani Enterprises shed 6 per cent each, Adani Ports 5.5%, Coal India 5.4%, and NTPC 5%.

That apart, Tata Steel, ONGC, Titan, Hindalco, Bharti Airtel and others declined in the range of 1-4%.

#3 Mahadev Betting App Case

The Enforcement Directorate (ED)'s investigation into the multi-crore Mahadev Online Book illegal betting app scam has found a link to the bubble in the stock market. The ED has frozen shares worth Rs 11 bn held in demat accounts linked to Dubai-based alleged hawala operator Hari Shankar Tibrewala.

Speaking of stock markets, does back of the envelope calculation work in a field like investing as well? Or is it a field where one is required to apply scientific rigor and precision?

Well, if you look at all the great investors like Ben Graham, Warren Buffett, and Peter Lynch, I don't think any of them applied complex mathematical formulae to evaluate their investments.

Co-head of Research at Equitymaster, Rahul Shah show how you can use a simple back-of-the-envelope calculation to decide whether a stock can be considered for investment or whether it should be rejected, in his latest video.

Tune in to the below video:

ITC Jumps 9%. Here's why

In news from the FMCG sector, London's British American Tobacco (BAT) on Wednesday likely sold a 3.5% stake in FMCG major ITC at an average selling price of Rs 404.4 per share in block deals to institutional investors. The stake sale is worth about Rs 175 bn but details of the buyer would be known later in the evening.

BAT, which makes Dunhill and Lucky Strike cigarettes, sold 43.68 crore shares, after which its shareholding in ITC fell to 25.5% from 29%. The company will use proceeds from the stake sale to buy back BAT shares. It had yesterday initiated the block deal and hired BofA Securities and Citigroup to handle it.

The news flow around BAT's intent to sell a stake in ITC has been a key supply hangover for the Nifty stock, which has been underperforming in the last few months. Following the stake sale, ITC shares jumped 8.6% to the day's high at Rs 439 on BSE.

BAT, whose initial investment in ITC dates back to the early 1900s, said it continues to be fully supportive of ITC's management team, performance and strategy.

For more details, check out Why ITC Share Price is Falling.

ITC is one of the best dividend-paying stocks. For more, check out the best dividend stocks you can count on.

Apart from that, we also covered an editorial a couple of months ago explaining why the prospects for ITC look good. You can read it here - ITC: Load, Aim...Fire.

Microtech Developers Share Price is Falling

Moving on to news from the realty sector, shares of Lodha, listed as Macrotech Developers, fell over 3% in early deals of 13 March, a day after promoter Sambhavnath Infrabuild and Farms sold 4.9 m shares, or a 0.5% stake, in the real estate developer at an average price of Rs 1,180.02 a share. The transaction was valued at Rs 5.9 bn.

Earlier this week, the company successfully raised Rs 30 bn through a qualified institutional placement (QIP). The QIP marks the fourth round of fundraising for the company in the last three years, bringing the total funds raised to more than Rs 130 bn.

Noteworthy participants in the QIP included Rajiv Jain's GQG Partners, Invesco Developing Markets Fund, and Stitching Depositary APG Emerging Markets Equity Pool.

Invesco Developing Markets Fund secured the most shares in the QIP issue, accounting for 21.4% of the issue size followed by GQG Partners (11.2%) and Stitching Depositary APG (9%).

The funds will be used by Macrotech to repay debt, acquire land and cover other expenses.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

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INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

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Indian Share Market Update: Top Gainers and Losers