Investors' wealth tumbles more than Rs 4.47 trn amid market drubbing

view original post

Investors became poorer by over Rs 4.47 lakh crore on Friday as markets faced severe drubbing, mirroring weak trends in global equities.

Indian markets | investor wealth falls

Investors became poorer by over Rs 4.47 lakh crore on Friday as faced severe drubbing, mirroring weak trends in global equities.

The 30-share BSE benchmark dived 866.65 points or 1.56 per cent to settle at 54,835.58. During the day, it tumbled 1,115.48 points or 2 per cent to 54,586.75.

Tracking an extremely weak trend in equities, the market capitalisation of BSE-listed firms tumbled Rs 4,47,172.57 crore to Rs 2,55,17,716.80 crore.

Weak global markets, unabated foreign fund outflows and firm crude oil prices played spoilsport for equities.

Foreign institutional investors offloaded shares worth Rs 2,074.74 crore on Thursday, according to stock exchange data.

Elsewhere in Asia, in Hong Kong, Shanghai and Korea settled significantly lower, while Tokyo ended higher.

Exchanges in Europe were trading in the negative zone in the afternoon session.

Stock exchanges in the US fell sharply in the overnight trade on Thursday.

Meanwhile, international oil benchmark Brent crude jumped 2.01 per cent to USD 113.3 per barrel.

“The single important factor roiling global equity is the reemergence of inflation as a major threat and market’s scepticism over the central banks’ ability to contain inflation without triggering a sharp economic slowdown.

“Nasdaq is at one-year lows and S&P 500 appears to be moving in that direction. India cannot remain uncoupled from this trend particularly when FPIs are on a selling spree and have more firepower to remain bearish,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

From the Sensex pack, Bajaj Finance, Axis Bank, Bajaj Finserv, Nestle, Wipro, HDFC, Infosys, HDFC Bank and UltraTech Cement were the major laggards.

In contrast, Tech Mahindra, PowerGrid, ITC, SBI and NTPC were among the gainers.

In the broader market, the BSE smallcap gauge declined 2.10 per cent and midcap index dipped 2.06 per cent.

Almost all BSE sectoral indices ended lower, with realty tumbling 3.53 per cent, followed by metal (3.10 per cent), basic materials (2.80 per cent), consumer durables (2.41 per cent) and IT (2.27 per cent). Utilities and power settled higher.

As many as 2,519 stocks declined, while 835 advanced and 106 remained unchanged.

“Indian equities witnessed a sharp sell-off in line with global peers on the back of concerns over economic growth due to rising inflation. Further, higher bond yields as well as continued FIIs selling added to the overall pressure,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, May 06 2022. 17:26 IST

Related Posts