Equity investors have lost Rs 15.74 lakh crore in five days of market declines, with the BSE benchmark falling 1,045.60 points on Thursday amid relentless foreign capital outflows, inflation fears, and sluggish global markets.
The Sensex has dropped 3,824.49 points, or 6.91 percent, in five trading days.
On Thursday, the BSE benchmark fell 1,045.60 points, or 1.99%, to 51,495.79, marking its sixth day of fall. During the day, it fell 1,115.91 points, or 2.12%, to a one-year low of 51,425.48.
In five days, the market capitalization of BSE-listed enterprises fell from Rs 15,74,931.56 crore to Rs 2,39,20,631.65 crore, mirroring negative trends in stocks.
Markets plunged on the weekly expiry day, losing more than 2%, amid weak global indications. As expected, the benchmark began to rise following the US Fed’s rate hike. It didn’t last long, though, and gradually dropped throughout the day. Nevertheless, it wasn’t able to last long and gradually declined throughout the day. Markets are skeptical about how global economies would thrive in the face of aggressive tightening, according to Ajit Mishra, VP – Research, Religare Broking Ltd, following Thursday’s market collapse.
Except for Nestle India, all Sensex components finished lower on Thursday, headed by Tata Steel, Tech Mahindra, Bharti Airtel, Wipro, IndusInd Bank, Bajaj Finance, Kotak Mahindra Bank, and NTPC.
In the broader market, the BSE smallcap index plummeted 2.87 percent, while the midcap index dropped 2.34 percent. The metal fell 5.48 percent, followed by basic materials (3.55 percent), industrials (3.06 percent), telecom (3.04 percent), real estate (2.69 percent), teck (2.51 percent), IT (2.48 percent), and utilities (2.48 percent) (2.39 percent).
Prashanth Tapse, Vice President (Research), Mehta Equities, stated that following the day’s dramatic decline, the company believes bulls will have to fight hard against a hawkish Fed and RBI, soaring oil prices, inflation concerns, growth anxieties, and continuous FII selling. There were 2,754 stocks that fell, 620 that rose, and 100 that were constant. According to exchange data, foreign institutional investors (FIIs) continued to be net sellers in the capital market on Wednesday, selling shares worth Rs 3,531.15 crore.
High inflation, increasing interest rates, and the threat of slowing GDP all combine to form a gloomy cocktail for global equities, according to Deepak Jasani, Head of Retail Research at HDFC Securities.