Investors' Wealth Erodes By Rs 2.91 Lakh Crore As Markets Tumble

Investors became poorer by Rs 2.91 lakh crore on Monday as the BSE benchmark Sensex fell sharply by nearly 1% amid a weak trend in global markets.

The 30-share BSE Sensex plunged 670.93 points or 0.93% to settle at 71,355.22. During the day, it tumbled 725.11 points or 1% to 71,301.04.

The market capitalisation of BSE-listed companies eroded by Rs 2,91,756.23 crore to Rs 3,66,40,965.08 crore.

"Investors fretted across Asian and European markets, as U.S. bond yields crossed 4% again that spiralled into a large-scale correction in domestic equities. While rising valuations were beginning to raise concerns, investors resorted to profit-taking as weakness in banking, IT and oil & gas stocks saw the Sensex end below the 72,000 mark," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

In Asian markets, Seoul, Shanghai and Hong Kong settled lower. Japan's Nikkei was closed for a holiday.

European markets were trading lower. The U.S. markets ended marginally up on Friday.

Among the Sensex firms, State Bank of India, ITC, Nestle, Asian Paints, Tech Mahindra, Mahindra & Mahindra, Tata Consultancy Services and Hindustan Unilever were the major laggards.

In contrast, HCL Technologies, NTPC, Sun Pharma, Power Grid, Bajaj Finance and Bharti Airtel were the gainers.

In the broader market, the BSE midcap gauge declined 0.87 per cent and smallcap index dipped 0.36 per cent.

Among the indices, FMCG fell 1.55%, commodities declined 1.44%, bankex (1.42%), metal (1.40%), financial services (1.05%), telecommunication (0.93%), IT (0.90%) and teck (0.77%).

Power, realty and services were the gainers.

"Global stocks slipped on Monday ahead of a busy week of inflation and economic data and amid the diminishing prospect of a cut in U.S. interest rates in the first quarter. Stocks fell ahead of a corporate reporting season where robust results are needed to justify high valuations," Deepak Jasani, Head of Retail Research at HDFC Securities, said.