scorecardresearchInvestors' wealth erode by ₹15.77 lakh crore in four days

Investors' wealth erode by 15.77 lakh crore in four days

Updated: 24 Dec 2022, 11:07 AM IST
TL;DR.

The 30-share BSE Sensex tanked 980.93 points or 1.61 per cent to settle at 59,845.29 on Friday. During the day, it tumbled 1,060.66 points or 1.74 per cent to 59,765.56.

During the day, the Sensex hit a new high of 62,412.33, while the Nifty was just a few points away from its record high of 18,604.45 (Mint)

During the day, the Sensex hit a new high of 62,412.33, while the Nifty was just a few points away from its record high of 18,604.45 (Mint)

(PTI) Equity investors have become poorer by 15.77 lakh crore in four consecutive days of market rout where the benchmark Sensex has tumbled over 3 per cent.

According to market analysts, investors remained cautious due to rising Covid cases around the globe sparking fears of another global outbreak of the virus.

"Besides spurt in Covid cases in China and Japan, the better-than-expected US Q3 GDP numbers further raised concerns that the Fed will go for more rate hikes to tame inflation, which further accentuated selling pressure in the markets," said Amol Athawale, Deputy Vice President - Technical Research at Kotak Securities Ltd.

The 30-share BSE Sensex tanked 980.93 points or 1.61 per cent to settle at 59,845.29 on Friday. During the day, it tumbled 1,060.66 points or 1.74 per cent to 59,765.56.

In four days, the benchmark has slumped 1,960.9 points or 3.17 per cent.

The continuous decline in equity markets eroded 15,77,850.03 crore from investors wealth as the market capitalisation of BSE-listed firms now stands at 2,72,12,860.03 crore.

"Globally markets were losing their grip post the Fed announcement which hinted on further rate hike in upcoming meeting. Robust US economic data points such as better-than-expected Q3 GDP, higher consumer confidence along with a healthier jobless claims fuelled the worries flaming the volatility.

"Additionally, the spike in Covid cases across China dampened the appetite for risk as it instilled fears of another global Covid outbreak," Vinod Nair, Head of Research at Geojit Financial Services, said.

On Friday, the broader market took a heavy beating, as the BSE smallcap gauge tumbled 4.11 per cent and the midcap index lost 3.40 per cent.

All sectoral indices ended in the negative territory, with services declining 5.43 per cent, followed by utilities (5.17 per cent) power (4.89 per cent), metal (3.93 per cent), commodities (3.92 per cent), energy (3.82 per cent), oil & gas (3.71 per cent) and industrials (3.26 per cent).

Barring Titan, all Sensex stocks closed in the negative territory, led by Tata Steel (lower by nearly 5 per cent), Tata Motors, SBI, Bajaj Finserv, Reliance Industries, Wipro, IndusInd Bank, Maruti Suzuki and L&T.

"Domestic equity markets corrected this week reacting to negative global cues. Globally markets remained volatile as it reacted to reported rise in Covid cases in China and strong US GDP data.

"Brent crude oil prices continue to trade around the USD 80 per barrel mark whereas the US 10-year treasury yield saw some upward movement this week," Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, said. 

First Published: 24 Dec 2022, 11:07 AM IST