Sensex falls 535 points on weak global cues
Debt schemes closure hits sentiment
- Weak global cues pulled down the Indian benchmark indices, with the abrupt closure of six debt schemes by Franklin Templeton Mutual Fund also affecting investor sentiment.
- The 30-share Sensex lost 535.86 points, or 1.68%, to close at 31,327.22. The broader Nifty ended the day at 9,154.40, down 159.50 points, or 1.71%.
- Elsewhere in Asia, the benchmarks of Hong Kong, Japan, South Korea, Taiwan, Indonesia, China and Singapore, all ended in the red.
- Back in India, the market breadth was extremely weak, as more than 1,600 stocks ended in the red as against less than 750 gainers.
- In the Sensex pack, financials lost the maximum ground with stocks like Bajaj Finance, IndusInd Bank, Axis Bank, ICICI Bank, HDFC and State Bank of India among the top losers.
- Investor sentiment took a hit after Franklin Templeton Mutual Fund announced that it had decided to wind up six debt schemes that have combined assets worth nearly ₹26,000 crore due to illiquid low-rated securities.
- The decision by Franklin Templeton to voluntarily wind up six of their debt funds has shaken up the debt mutual fund industry.
- Meanwhile, institutional investors were net sellers, with both foreign and domestic institutional investors ending Friday as net sellers at ₹207 crore and ₹994 crore, respectively.