Investor Wealth Erodes By Rs 1.24 Lakh Crore As Markets Plunge
Investor wealth eroded by Rs 1.24 lakh crore on Monday amid huge selling pressure in the equity market where the benchmark S&P BSE Sensex plunged 363 points.
Tracking weak global sentiment amid fresh trouble for the world economy after the U.S. President Donald Trump vowed to further raise tariffs on Chinese goods, the Sensex closed at 38,600.34, plunging 362.92 points or 0.93 percent.
Led by the sell-off in the broader market, the market capitalisation of BSE-listed companies dropped Rs 1,24,380.06 crore to Rs 1,50,37,633.14 crore.
“Global indices bled today as the U.S.-China trade war condition further intensified. The worsening situation has put the entire world in a state of flux where even a tiny escalation can cause big damage,” said Umesh Mehta, head of research, Samco Securities Ltd.
From the 30-share pack, 25 scrips witnessed sell-off led by Yes Bank Ltd., Tata Motors Ltd., Bajaj Finance Ltd., Tata Steel Ltd. and HDFC Ltd.
On the BSE, 1,634 scrips declined, while 831 advanced and 200 remained unchanged.
Sectorally, BSE consumer durables, metals, realty, capital goods and auto indices fell up to 2.82 percent.
In the broader market, the BSE mid-cap and small-cap indices also ended lower by up to 0.85 percent.
Chinese bourses sank led by Shanghai Composite Index that plunged 5.58 percent. Benchmark indices of Japan, Hong Kong and South Korea also witnessed sharp declines.