Market investors become poorer by ₹5.29 lakh crore amid massive correction in stocks


Representational file image.

Representational file image.
| Photo Credit: ANI

A sharp fall in the equity market made investors poorer by ₹5.29 lakh crore on Tuesday when the BSE benchmark Sensex tumbled over 800 points.

A host of negative triggers — muted quarterly earnings, continuous foreign fund outflows and weak trends in Asian and European markets — dragged the benchmark indices lower.

The BSE benchmark gauge tumbled 820.97 points or 1.03% to settle at 78,675.18. During the day, it plunged 948.31 points or 1.19% to 78,547.84.

The market capitalisation of BSE-listed companies eroded by ₹5,29,525.42 crore to ₹4,37,24,562.57 crore ($5.18 trillion).

“Domestic earnings disappointment and weak Asian & European market cues fuelled another round of massive correction as key benchmark indices slumped. The expensive valuations of Indian markets and the rising bond yields coupled with worries of Trump’s likely protectionist policies going ahead has continued to fuel pessimism amongst the local investors,” Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

From the 30-share Sensex pack, NTPC, HDFC Bank, Asian Paints, State Bank of India, Tata Motors, Maruti, JSW Steel and Power Grid were among the major laggards.

On the other hand, Infosys, Sun Pharma, ICICI Bank and Tata Consultancy Services were the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,306.88 crore on Monday, according to exchange data.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the negative territory.

European equity markets were also trading in the red. Wall Street ended higher on Monday.

The BSE smallcap gauge tanked by 1.26% and midcap index declined by 0.98%.

Among sectoral indices, power slumped the most 2.79%, followed by utilities (2.20%), capital goods (2.14%), auto (1.95%), industrials (1.82%) and metal (1.52%).

Realty and Focused IT were the gainers.

A total of 2,742 stocks declined while 1,226 advanced and 93 remained unchanged on the BSE.