Investors Become Poorer By Rs5 Lakh Crore In 2-Days Of Market Crash

NEW DELHI — Investors became poorer by Rs 5 lakh crore in two days of stock market crash where the BSE benchmark index plummeted by 1,357 points.

Markets witnessed severe selling on Thursday with the benchmark Sensex crashing over 806 points to end at 35,169.16 after the rupee crashed to a new life-time low and global crude oil price breached the USD 86 a barrel. The gauge had lost 550.51 points on Wednesday on rupee woes and surging crude oil prices.

Led by the sharp sell-off in equities, the market capitalisation of BSE-listed companies tumbled Rs 5,02,895.97 crore to Rs 1,40,39,742.92 crore (USD 1.90 trillion). The dollar figure has been arrived at by calculating the m-cap from rupee’s intra-day low of 73.81 Thursday. With this, market capitalisation of BSE-listed firms slipped below the USD 2 trillion.

“The strongest of businesses and the bluest of blue chips have cracked in the last couple of sessions, which highlights the prevailing negative sentiment and an environment of pessimism. With the rupee hitting record low, crude prices moving northwards, increasing fears of a broadening current account deficit along with the liquidity worries led to another major fall in the indices and broader markets.

“With deteriorating macros, all eyes will now be on the second quarter earnings and how the current liquidity situation is addressed,” said Devang Mehta, Head – Equity Advisory, Centrum Wealth Management. The bloodbath on the bourses was primarily triggered by continued slide in the rupee which hit yet another low of 73.81 (intra-day) against the dollar, brokers said. From the 30-share pack, 24 scrips declined, while 6 advanced.

RIL was the worst hit from the pack plunging 7.03 per cent followed by Hero MotoCorp 5.45 per cent and TCS 4.54 per cent. In the broader market, the S&P BSE midcap index fell by 1.93 per cent and smallcap index 2.07 per cent.

“Indian markets have been seeing a sharp sell off on account of depreciation in rupee and higher crude prices. This negative sentiment was further reinforced by fears of liquidity crisis to support credit growth following the IL&FS scare,” said Nitasha Shankar, Sr Vice President and Head of Research, YES Securities. Nearly 400 stocks hit their 52-week low on BSE Thursday. At the BSE, 1,889 stocks declined, while 775 advanced and 138 remained unchanged.

Be Part of Quality Journalism

Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.



Observer News Service

Leave a Reply

Your email address will not be published.