Equity Investors Become Poorer By Rs 2.95 Lakh Crore As Markets Fall

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Investors’ wealth eroded by Rs 2.95 lakh crore on Thursday as markets fell by nearly 1% amid feeble global cues and unabated foreign capital outflows.

The 30-share BSE Sensex fell 610.37 points or 0.92% to settle at 65,508.32. During the day, it plunged 695.3 points or 1.05% to 65,423.39.

The market capitalisation of BSE-listed firms fell by Rs 2,95,144.09 crore to Rs 3,16,65,937.80 crore.

In Asian markets, Shanghai ended in the green while Tokyo and Hong Kong settled lower. Trading was closed in South Korea for a holiday.

European markets were trading in the negative territory. The U.S. markets ended on a mixed note on Wednesday.

Global oil benchmark Brent crude dipped 0.38% to $96.18 a barrel.

Foreign Institutional Investors offloaded equities worth Rs 354.35 crore on Wednesday, according to exchange data.

“After a firm opening, markets lost ground immediately and plunged deep into the red in the second half, as IT, metals, FMCG and automobile stocks led the slump in key benchmark indices. Markets were range-bound in the last few sessions and one was anticipating a sharp fall, and the weak global factors have been weighing on investors’ minds for quite some time,” Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd., said.

“If the U.S. dollar and bond yields maintain their ascend, the downward trend may continue for some more time,” he added.

Tech Mahindra Ltd. was the biggest drag in the Sensex pack, falling 4.59%, followed by Asian Paints Ltd. which declined 3.97%. Wipro Ltd., Mahindra & Mahindra Ltd., Infosys Ltd., ITC Ltd., Kotak Mahindra Bank Ltd., Bajaj Finserv Ltd., Hindustan Unilever Ltd., IndusInd Bank, Reliance Industries Ltd. and JSW Steel Ltd. were the other major drags.

On the other hand, Larsen & Toubro Ltd., Power Grid Corp., Bharti Airtel Ltd. and Axis Bank Ltd. were among the gainers.

In the broader market, the BSE midcap gauge declined 1.19% and smallcap index fell 0.34%.

Among the indices, IT declined 1.84%, FMCG fell 1.74%, tech (1.49%), consumer durables (1.29%), auto (1.24%), commodities (1.21%), consumer discretionary (1.15%), metal (1.05%), realty (0.98%) and services (0.89%).

Telecommunication and capital goods were the gainers.

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