News Nation Logo

BREAKING

After the market crash, investors become poorer by Rs 5 lakh crore in two days

PTI | Updated on: 04 Oct 2018, 06:11:37 PM
After the market crash, investors become poorer by Rs 5 lakh crore in two days (File Photo)

New Delhi:

After two days of the stock market crash, investors became poorer by Rs 5 lakh crore. The markets on Thursday witnessed severe selling on Thursday with the BSE benchmark Sensex crashing over 806 points to end the day at 35,169.16. The rupee too plunged to a new life-time low and global crude oil price breached the $86 a barrel.

The gauge had lost 550.51 points Wednesday on rupee woes and surging crude oil prices.  Led by the sharp sell-off in equities, the market capitalisation of BSE-listed companies tumbled Rs 5,02,895.97 crore to Rs 1,40,39,742.92 crore ($1.90 trillion). The dollar figure has been arrived at by calculating the m-cap from rupee’s intra-day low of 73.81 on Thursday.

Also Read | Uttar Pradesh: 30 arrested for ‘smuggling’ buffaloes in Varanasi

With this, market capitalisation of BSE-listed firms slipped below the $2 trillion.

“The strongest of businesses and the bluest of blue chips have cracked in the last couple of sessions, which highlights the prevailing negative sentiment and an environment of pessimism. With the rupee hitting record low, crude prices moving northwards, increasing fears of a broadening current account deficit along with the liquidity worries led to another major fall in the indices and broader markets.

“With deteriorating macros, all eyes will now be on the second quarter earnings and how the current liquidity situation is addressed,” said Devang Mehta, Head, Equity Advisory, Centrum Wealth Management.

The bloodbath on the bourses was primarily triggered by continued slide in the rupee which hit yet another low of 73.81 (intra-day) against the dollar, brokers said.

Read More | Were Shilpa Shetty and Salman Khan dating?

From the 30-share pack, 24 scrips declined, while 6 advanced.

RIL was the worst hit from the pack plunging 7.03 per cent followed by Hero MotoCorp 5.45 per cent and TCS 4.54 per cent. In the broader market, the S&P BSE midcap index fell by 1.93 per cent and smallcap index 2.07 per cent.

“Indian markets have been seeing a sharp sell off on account of depreciation in rupee and higher crude prices. This negative sentiment was further reinforced by fears of liquidity crisis to support credit growth following the IL&FS scare,” said Nitasha Shankar, Sr Vice President and Head of Research, YES Securities.

Nearly 400 stocks hit their 52-week low on BSE on Thursday. At the BSE, 1,889 stocks declined, while 775 advanced and 138 remained unchanged.

For all the Latest Business News, Download News Nation Android and iOS Mobile Apps.

First Published : 04 Oct 2018, 06:06:30 PM

Videos