The 30-share index on Friday plunged 279.62 points or 0.75 per cent to end at 36,841.60, despite firm global clues and recovery of rupee. Nifty also fell 91.25 points or 0.81 per cent to end at 11,143.10.
In afternoon trade on Friday, Sensex slipped above 1,000 points and recovered 900 points swiftly. The broader NSE Nifty also slipped below the 11,000 mark, falling over 360 points or 3.27 per cent, to touch a low of 10,866.45, before recovering over 300 points to trade at 11,169.90.Heavy selling was witnessed in realty, healthcare, banking, IT, auto, teck, power consumer durables, FMCG, capital goods, infrastructure, metal and PSU indices, which fell up to 3.65 per cent.Yes Bank was the biggest Sensex loser, cracking 34 per cent to hit a one-year low after the Reserve Bank on Wednesday curtailed the term of its founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019.The BSE has some reviews and modifies its composition to be sure it reflects current market conditions. The index is calculated based on a free float capitalisation method, a variation of the market capitalisation method. Instead of using a company’s outstanding shares it uses its float, or shares that are readily available for trading. Free Floating capital implies total capitalization less Directors shareholding.As per free float capitalisation methodology, the level of index at any point of time reflects the free float market value of 30 component stocks relative to a base period. The market capitalisation of a company is determined by multiplying the price of its stock by the number of shares issued by corporate actions, replacement of scrips. The index has increased by over twenty five times from June 1990 to the present. Using information from April 1979 onwards, the long-run rate of return on the S&P BSE SENSEX works out to be 18.6% per annum.As of 25th September 2017, the full market capitalisation of S&P BSE SENSEX was about ?54,637.0878 billion (US$761 billion) (37% of GDP) while its free-float market capitalisation was ?30,094.2286 billion (US$419 billion). During 2008-12, Sensex 30 Index share of BSE market capitalisation fell from 49%
Among hosing finance stocks, DHFL led the pack by tanking over 50 per cent, followed by Indiabulls Housing Finance, Can Fin Homes, PNB Housing Finance and LIC Housing Finance cracking up to 17 per cent.