Titan shares sink 12%, BSE Sensex slumped 207 points
Titan company's shares slumped by 12 percent on the BSE in the opening deals after the company reported a lower-than-expected growth in jewellery business.
Titan shares slumpled about 13% on Bombay Stock Exchange (BSE) just after the company announced lower revenue growth for the April-June quarter. Titan Company Ltd reported a lower-than-expected growth in jewellery business owing to a tough macro-economic environment with consumption taking a hit. BSE Sensex cracked over 800 points yesterday while slumped 207 points today and NSE Nifty 50 traded around, 11,500, down 0.5 percent
It dragged by losses in HDFC twins, L&T and RIL stocks, amid heavy selloff in global equities. The BSE Sensex fell 817.48 points to 38,695.91 in trade led by Bajaj Finserv as biggest loser among Bajaj Finance, ONGC, NTPC, Hero Motocorp, IOC, Indiabulls Housing Finance, Maruti, L&T, Grasim Industries and SBI which dropped 4-8 percent. Similarly, the broader Nifty sank too over 271 points to 11,539.75.
Earlier in the day, the Sensex had dropped by 400 points at 39,107.72 and Nifty plunged 128 points, or 1.08 percent, to 11,683.15. Top losers in the Sensex are Bajaj Finance, ONGC, Hero MotoCorp, Maruti, L&T, NTPC, SBI, Tata Motors and Axis Bank, cracking up to 9 percent.
However, Yes Bank, HCL Tech, TCS, TechM, M&M and Infosys were among the gainers. These players were rising up to 5 percent. Auto and banking shares were among the worst performers in today's session amid broad-based selling pressure. Maruti Suzuki shares fall below Rs 6,000 level for first time since March 30, 2017.
Reasons of Sensex crash
• Budget proposal to increase minimum public shareholding of listed companies to 35 per cent from 25 per cent spooked market sentiment. Besides, the Budget proposed a 20 per cent tax in case on buybacks, which may dry up share repurchases in the market.
• Asian markets opened significantly lower as hopes of steep cuts in interest rates by the US Federal Reserve faded after the world's largest economy posted better-than-expected jobs data.
• As per the data Shanghai Composite Index plunged 2.58 percent, Hang Seng 1.54 percent, Nikkei 0.98 percent and Kospi tumbled 2.20 percent.
• US Jobs data dragged emerging markets currencies against dollar.
• A Budget proposal to increase minimum public shareholding of listed companies to 35 per cent from 25 per cent spooked market sentiment.
• If the budget proposals are to be implemented in the next 18 months or so, we might see a large amount of off loading, which might take place.