Sensex falls 535 points on weak global cues  

#GS3 #Economy  

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.  
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