Market crash in numbers: Rs 5 lakh cr investor wealth gone as Sensex tanks over 800 pts, check details
Today, stocks saw extreme devastation as Sensex crash over 800 points and ₹5 lakh crore of investor capital was destroyed. On Monday, the Sensexcrash 844 points to close at 76,535; the Nifty fell 165 points to settle at 23, 265.This steep drop was emblematic of poor investor sentiment throughout the market.
Market crash in numbers: Rs 5 lakh cr investor wealth gone as Sensex tanks over 800 pts, check details
Major stocks pulling down the Sensex saw Zomato, M&M, Tata Steel, Adani Ports, HDFCBank, Kotak Mahindra Bank and Asian Paints falling up to 2.80% in early trade. On the other hand, only a handful of stocks, such as Titan, NTPC, and TCS, saw a little bit of growth while overall market breadth was negative.
On the BSE, 324 stocks touched their 52-week lows while only 65 stocks reached their 52-week highs — a grim picture of investor activity. Of 3,602 stocks trading, over 2,700 were lower, reflecting broad selling pressure. As many as 245 stocks saw their lower circuits, while 122 shares hit their upper circuit.
The FII component of the selloff, with FIIs selling equities worth ₹2,254.68 crore, while domestic investors played defensive, purchasing equities worth ₹3,961.92 crore. This led to an FII selling spree, further deteriorating the market mood.
A similar trend was observed in the midcap and small-cap indices, which followed the weakness in broader markets. The BSE midcap index fell 739pts to end at 43,501 while the BSE small-cap index fell 831pts to end at 51,891.
Tough winds are expected to continue weighing on equities, market experts noted. Middle Rupee Global cues, including firmer US job data, have brought rate cut expectations down and kept investors cautious. A decline in shares of key firms, including Reliance Industries, Kotak Bank and PowerGrid, also led to the fall.
Though the Sensex and Nifty did manage to end the previous session on a high note, it did not last long. However, this current downturn illustrates the difficulties the market will face as it tries to adapt to both domestic and foreign changes in the economy.
