Sensex sheds over 1,000 points, Nifty nears 24,800 as investor wealth erodes by Rs 5.31 lakh cr

Investors witnessed a sharp erosion in wealth amounting to Rs 5.31 lakh crore as the market capitalisation of BSE-listed companies took a hit on Friday, 6 September. The total market cap fell to Rs 460.40 lakh crore, down from Rs 465.68 lakh crore recorded in the previous trading session.

This marked the third straight day of market declines, with the Sensex dropping below the 81,000 level and the Nifty nearing 24,800, amid anticipation of the US jobs data release later in the day.

Indian markets struggled under the weight of weak global cues, closing more than 1 per cent lower. After a flat opening, the Nifty faced consistent pressure throughout the day, breaking key support levels to finish at 24,852.15. The broader market mirrored this downward trend, with banking and energy stocks leading the sell-off.

The Sensex dropped by 1,017.23 points or 1.24 per cent to close at 81,183.93, while the Nifty ended 292.95 points lower, a 1.17 per cent drop. For the week, both the BSE Sensex and Nifty50 recorded a decline of 1.5 per cent.

Vinod Nair, head of research, Geojit Financial Services said, “The domestic market was in panic today due to the SEBI deadline over FIIs disclosure norm, however this is not expected to impact India’s lucrativeness to FIIs in the long-term. Coupled with a lack of new market catalysts and elevated valuations, a muted trend is expected to continue in the short term."

He added that global markets are also adopting a cautious stance ahead of the release of the US non-farm payroll data. Additionally, the continuous decline in oil prices to a 14-month low and weak job openings data are heightening fears of a slowdown in the US in the near term, Nair said.

Among the top Nifty losers were SBI, HCL Technologies, NTPC, ICICI Bank, and BPCL, while the gainers included Asian Paints, JSW Steel, Bajaj Finance, LTIMindtree, and Divis Labs. All sectoral indices finished in negative territory, with auto, PSU bank, oil and gas, media, telecom, IT, realty, and capital goods sectors losing between 1 per cent and 3 per cent.

The BSE midcap index fell by 1.4 per cent, and the smallcap index lost 1 per cent, despite hitting a fresh record high earlier. Around 290 stocks, including names like Ajanta Pharma, Colgate Palmolive, Muthoot Finance, and Persistent Systems, touched their 52-week highs on the BSE.

Godfrey Phillips India Ltd saw a significant surge in its stock price during Friday's trading session, reaching an all-time high despite a broader market correction. The stock jumped 14.50 per cent to a record Rs 7,320, fuelled by news of the company's upcoming board meeting on 20 September to discuss a potential bonus share issue. If approved, shareholders would receive two additional shares for every share they currently own (2:1 ratio).

The company stated in its exchange filing that the board will consider issuing “2 fully paid-up equity shares of Rs 2 each for every 1 existing equity share by capitalising reserves”.

Both the BSE and NSE have placed Godfrey Phillips under the long-term additional surveillance measure (ASM) framework, a cautionary action for investors due to the stock's price volatility.

Trading volume on the BSE spiked, with around 28,000 shares changing hands — significantly higher than the recent average of 16,000 shares. The day’s turnover reached Rs 19.27 crore, giving the company a market capitalisation of Rs 37,751.23 crore.