Sensex falls 1.2% as FPIs offload stocks fearing SEBI action

The benchmark S&P BSE Sensex fell about 1.2% on Friday led by banking and heavyweight shares.

The Sensex slumped 1,017.23 factors to shut at 81,183.93. Sensex shares which misplaced most worth included State Financial institution of India(4.4%), ICICI Financial institution (2.22%), NTPC (2.08%), HCL Tech (2.02%), Reliance (1.92%) and Tata Motors (1.87%). The NSE Nifty-50 index too fell 1.17% to 24,852.15.

Ameya Ranadive, Licensed Market Technician, StoxBox mentioned: “The huge sell-off will be attributed to the ultimate deadline for FPIs to reveal their useful house owners to the Securities and Change Board of India.

“Failure to fulfill this requirement would end in FPIs’ disqualification from investing in India, forcing liquidation of their holdings. This regulatory strain led FPIs to promote their inventory, inflicting a broad market decline,” he added.

“The market itself have been in tandem with the frontline indices, mirroring the impact of the revenue reserving. On this bloodied market, all of the sectors traded within the pink, largely because of the revenue bookings,” he added.