Five-Day Market Slide Wipes Off Rs 14.60 Lakh Crore In Investor Wealth

Equity investors became poorer by Rs 14.60 lakh crore in five days of market slump amid mounting tensions in the Middle East and higher valuations of Indian stocks.

Falling for the fifth day running, the 30-share BSE Sensex tanked 522.82 points, or 0.81%, to settle at 64,049.06. During the day, it dropped 659.72 points, or 1.02%, to 63,912.16. In five days, the BSE benchmark has plunged 2,379.03 points, or 3.58%.

The market capitalisation of BSE-listed companies eroded Rs 14,60,288.82 crore to Rs 3,09,22,136.31 crore in five days.

"Markets extended fall for the fifth straight session as banking, IT stocks led the slump in the backdrop of persisting global turbulence. Higher valuations of Indian stocks have been a concern and the current global turmoil is allowing investors to reduce their equity exposure," said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.

Among the Sensex firms, Infosys, Bharti Airtel, NTPC, IndusInd Bank, ICICI Bank, Tata Motors, Larsen & Toubro, Bajaj Finance, Tech Mahindra, Titan and Axis Bank were among the major laggards.

Tata Steel, State Bank of India, Maruti, Mahindra & Mahindra, Nestle, and JSW Steel were the gainers.

"It was a sea of red at Dalal Street which was primarily clouded by lingering concerns about corporate India's earnings, which as of date was uninspiring and, most importantly, they could come under heavy pressure from inflation, an economic downturn, and soaring interest rates.

"The negative takeaway was that the bear remained in total control despite WTI oil prices tumbling to $83 a barrel," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

In the broader market, the BSE smallcap gauge declined 0.77% and midcap index fell 0.52%.

Among the indices, teck dropped 1.39%, telecommunication fell 1.29%, utilities (1.25%), IT (1.13%), power (1.09%), financial services (0.83%), realty (0.80%) and bankex (0.70%).

Metal emerged as the only gainer.