Investor wealth tumbles over Rs 9.75 trn in two days of market crash

The 30-share BSE benchmark tanked 1,456.74 points, or 2.68%, to settle at 52,846.70 on Monday

Equity investors became poorer by over Rs 9.75 lakh crore in two days of heavy decline in the equity market, with the Sensex plunging 1,457 points on Monday.

The 30-share BSE benchmark tanked 1,456.74 points or 2.68 per cent to settle at 52,846.70 on Monday. It had ended 1,016.84 points or 1.84 per cent lower at 54,303.44 on Friday.

In line with weak trend in equities, the market capitalisation of BSE-listed firms eroded by Rs 9,75,889.77 crore to Rs 2,45,19,673.44 crore in two days.

"Markets crashed with full force on the first day of the week, as benchmark indices slumped below their crucial levels on across-the-board selling pressure. There have been heightened concerns amongst investors that central banks will be more aggressive in the coming months to hike interest rate in order to combat inflation, which will in turn hurt economic growth and put margins under pressure.

"Markets were also down due to continued strength in Brent crude prices, 10-year bond yields rising to 3.20% from recent lows of 2.80%, and the expected CPI numbers," said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd.

Bajaj Finserv, Bajaj Finance, IndusInd Bank, Tech Mahindra, ICICI Bank, TCS, NTPC, Infosys and State Bank of India were the major laggards in the Sensex pack on Monday.

In the broader market, the BSE smallcap gauge tanked 3.15 per cent and midcap index declined by 2.73 per cent.

All BSE sectoral indices ended lower, with IT tumbling 3.92 per cent, followed by teck (3.45 per cent), metal (3.39 per cent), industrials (3.35 per cent), finance (3.17 per cent) and bank (3.12 per cent).

A total of 2,839 stocks declined, while 658 advanced and 116 remained unchanged.

Elsewhere in Asia, markets in Seoul, Tokyo, Hong Kong and Shanghai settled with deep cuts.

Markets in Europe were also facing heavy selling pressure in mid-session deals.

Stock exchanges in the US ended sharply lower on Friday.

"Higher-than-expected hot inflation data in the US last week have made markets nervous on upcoming US Fed policy meet due current week. After high inflation markets are fearing US Fed could take unexpected policy measures in order to control inflation and which may impact overall economic health," said Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers.

Foreign Institutional Investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 3,973.95 crore on Friday, as per exchange data.