Investors’ wealth tumbled over Rs 7.73 lakh crore as markets extended their downtrend for the second straight session on Monday following weakness in global equities.
The 30-share BSE Sensex settled 364.91 points or 0.67 per cent lower at 54,470.67 on Monday. The Sensex dived 866.65 points or 1.56 per cent to finish at 54,835.58 on Friday.
The two-day slump in equities eroded Rs 7,73,582.29 crore from the market capitalisation of BSE-listed firms, which now stands at Rs 2,51,91,307.08 crore.
Weakness in global markets, unabated foreign fund outflows and the rupee plunging to its life-time low against the US dollar have weighed on sentiment.
“There seems to be no respite for the markets from the bear hug as the weak Asian gauges and fall in European indices dampened the investors’ sentiment. Post the results, Reliance Industries came under severe hammering, which dragged the overall markets,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.
Reliance Industries was the top drag on the Sensex pack on Monday, dropping 3.97 per cent, after the company’s March quarter earnings failed to cheer investors.
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said, “Indian equity market continued with its sell-off in line with global peers on the back of slowing economic growth and rising inflationary concerns.”
“Global cues were weak amidst concerns over aggressive monetary tightening by central banks to overcome soaring inflation which could slow down the economic growth. Further Covid induced lockdown in Shanghai further dampened the sentiments,” he added.
World stocks remained under pressure on growing concerns about interest rate hikes by central banks amid stubborn inflation.