Investors’ wealth erodes by Rs 6.59 lakh crore as stock markets tumble
New Delhi: Equity investors lost Rs 6.59 lakh crore in a single session on Monday as domestic markets slid sharply amid mounting geopolitical tensions in West Asia that rattled risk appetite.
The 30-share BSE Sensex plunged 2,743.46 points or 3.37 per cent to 78,543.73 in early trade before paring losses to close at 80,238.85, down 1,048.34 points or 1.29 per cent. The market capitalisation of BSE-listed companies fell by Rs 6,59,978.08 crore to Rs 4,56,90,693.19 crore, equivalent to USD 5 trillion.
“Indian equities witnessed a sharp decline as escalating tensions in West Asia triggered a pronounced risk-off response,” said Siddhartha Khemka of Motilal Oswal Financial Services Ltd, citing US and Israeli strikes on Iran and retaliatory action.
Brent crude surged 7.29 per cent to USD 77.85 a barrel, adding pressure.
Ajit Mishra of Religare Broking Ltd said higher oil prices raised worries over inflation, currency stress and India’s import bill.
Heavy selling hit InterGlobe Aviation, Larsen and Toubro, Adani Ports, Maruti, Asian Paints and Reliance Industries, while Bharat Electronics, Sun Pharma and ITC advanced. Broader markets weakened as smallcap and midcap indices fell 1.81 per cent and 1.67 per cent respectively. Across the BSE, 3,561 stocks declined, against 821 advances.
