Stock investors poorer by more than Rs 6.71 Lakh Crore as markets plunge

The 30-share BSE Sensex sank 1,416.30 points, or 2.61 percent, to 52,792.23.

New Delhi:

Equity investors were depleted by more than Rs 6.71 lakh crore on Thursday as national benchmark indices fell amid a global market meltdown.

The BSE’s benchmark 30-share index Sensex sank 1,416.30 points, or 2.61 percent, to 52,792.23, following weak global markets and persistent outflows of foreign funds.

In line with the weak market trend, the market capitalization of BSE-listed companies fell by Rs 6,71,051.73 crore to Rs 2,49,06,394.08 crore.

“The drop in other Asian indices and European indicators triggered a sell-off in local equities as both Sensex and Nifty finished below their crucial psychological levels of 53k and 16k, respectively. Investors were concerned about stagflation risks and the more aggressive stance of the Federal Reserve to control inflation by opting for more rate hikes, which would have a greater impact on the future of the economy.

“Until such time as FIIs remain net sellers, the journey south will be difficult to reverse,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

Of the firms Sensex, Wipro, HCL Technologies, Infosys, TCS, Tech Mahindra, Tata Steel, IndusInd Bank and Kotak Mahindra Bank were the main laggards.

ITC, Dr Reddy’s and PowerGrid were the only winners.

Except for Shanghai, other Asian markets ended lower, with Seoul, Hong Kong and Tokyo shedding as much as 2.54 percent.

Stock markets in Europe also traded lower in the afternoon session.

US stock markets closed in the red on Wednesday.

Meanwhile, international oil benchmark Brent crude fell 1.27 percent to $107.7 a barrel.

Overseas institutional investors remained in sell mode, dumping shares worth a net of Rs 1,254.64 crore on Wednesday, according to stock exchange data.

“Markets fell sharply lower and lost more than 2.6%, pressured by weak global signals. The collapse in US markets, on fears of aggressive rate hikes, unsettled investors and caused a weak start.

“The situation was made even worse by strong sell-offs across the top index companies across all sectors with IT and metal majors being among the biggest losers,” said Ajit Mishra, vice president of research at Religare Broking Ltd. .

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