The Sensex was down 839 points and the Nifty was down 260 points

Ahmedabad. Monday, August 31, 2020

The Indian stock market once again witnessed tremendous volatility today. After the Sensex regained its 40,000 level at the Bombay Stock Exchange in the early stages of trading today and reports of renewed border clashes with China and the implementation of a new system of margin pledging and re-pledging in the market from tomorrow. A huge gap of 839 points was recorded at the end of trading with the wash.

The Sensex rebounded 542.86 points to 40,000 and reached 40,010 after a strong tone started today following reports of a deal between Reliance and Future Group over the weekend.

Reports of renewed clashes with China on India's Ladakh border during the middle of the trading session had dampened the market's bullish move. On the other hand, market regulator SEBI has rejected the demand of clearing members and brokers. The market's morale was stagnant as it was adamant on implementing the new pledge / replacement margin system from September 1.

The Sensex softened to 38628.29 with a gap of 839.02 points at the end of trading after falling intra-day to a low of 38395.89 on the back of heavy selling pressure from Chomer. The Sensex fell 1382 points from today's intra-day high. The bearish circuit was implemented in 525 stocks today.

In the wake of the huge gap in the Sensex, investors' assets (BSE market cap) rose by Rs. 4.56 lakh crore was eroded to Rs. 153.76 lakh crore. NSE's Nifty also fell 260.10 points to 11,387.50. The Nifty was up 407 points with a rising headline.