The bears' onslaught on Dalal Street extended to the sixth session on October 26 amid rising US bond yield and worsening situation over the conflict between Hamas and Israel. Most indices were down over a percent however, smallcap index saw a smart recovery but still closed lower.
Investors were left poorer by Rs 2.95 lakh crore as their wealth reflected by the total market cap of BSE-listed companies slipped to Rs 306.27 lakh crore. In the last six sessions, investors have lost Rs 17.50 lakh crore.
The 50-share NSE Nifty fell 264.90 points or 1.39 percent to 18,857.25. BSE flagship Sensex plunged 1.41 percent or 900.91 points to 63,148.15.
Market experts point out that weak earnings performance by India Inc. and high volatility due to expiry of monthly futures and options (F&O) contracts also hit the market hard.
"Till date, the actual domestic Q2 results are below par in comparison to the excited earnings forecasted. Similar disappointments are visible in developed economies," said Vinod Nair, Head of Research at Geojit Financial Services.
"Downgrade in earnings and valuation is arising due to risk of further slowdown of the economy due to geopolitical and elevated interest rates. Also selling pressure intensified due to expiry-led volatility influencing investors to stay cautious."
Broader markets bled as well. Nifty Midcap was down 1.16 percent. Nifty Smallcap saw some recovery from day’s low and ended down 0.34 percent. Nifty 500, the broadest index in the market, dropped 1.23 percent.
All sectoral indices closed with cuts. Nifty Metal was the biggest loser, down 1.62 percent. Nifty Financial Services, Nifty Oil & Gas, Nifty Healthcare and Media were other losers.
Among the Nifty, Axis Bank, Adani Ports, Power Grid and HCL Tech were the gainers of the day. Mahindra & Mahindra was the biggest loser, down about 4 percent. Bajaj Finance, Asian Paints and UPL were other top losers.
(With inputs from agencies)