Investors' wealth slumps Rs 8.86 lakh cr amid geopolitical chaos, surging oil prices

New Delhi: Equity investors faced an erosion of Rs 8.86 lakh crore from their wealth on Friday as markets went into a tailspin, falling over 2 per cent as the West Asia conflict shows no signs of easing, leading to a fresh spike in crude oil prices.

The 30-share BSE Sensex tanked 1,690.23 points or 2.25 per cent to settle at 73,583.22. During the day, it plunged 1,739.04 points or 2.31 per cent to 73,534.41.

Tracking the bearish trend in equities, the market capitalisation of BSE-listed companies slumped by Rs 8,86,383.92 crore to Rs 4,22,15,450.82 crore (USD 4.46 trillion).

Crude oil prices staying above the USD 100 per barrel mark, the rupee's free fall and relentless foreign fund outflows have also made investors jittery amid the ongoing West Asia chaos.

From the 30-Sensex firms, Reliance Industries dropped the most by 4.55 per cent, followed by InterGlobe Aviation, Bajaj Finance, State Bank of India, Eternal and HDFC Bank.

In contrast, Tata Consultancy Services, Bharti Airtel, Power Grid and Sun Pharma were the gainers.

Brent crude, the global oil benchmark, jumped 2.93 per cent to USD 111.2 per barrel.

"Indian equity markets witnessed a steady and broad-based decline through the session, with sentiment remaining clearly subdued despite President Trump extending the pause on strikes targeting Iran’s energy infrastructure until April 6 and reiterating the possibility of diplomatic engagement.

"However, the reassurance failed to fully translate into market confidence, as Tehran continued its retaliatory actions following the US–Israel offensive, with no clear signs of alignment on US proposals," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

A total of 3,544 stocks declined, while 822 advanced and 135 remained unchanged on the BSE on Friday.

In a holiday-shortened week, the BSE benchmark lost 949.74 points or 1.27 per cent, and the Nifty tanked 294.9 points or 1.27 per cent.

"Investor sentiment remained fragile due to a lack of clarity surrounding geopolitical tensions between the US and Iran, which once again pushed crude oil prices above the USD 100 mark. In addition, persistent FII (Foreign Institutional Investors) outflows and sharp weakness in the rupee further weighed on risk appetite," Ajit Mishra – SVP, Research, Religare Broking Ltd said.