Market Crash: Rs 8.67 Lakh Crore Lost in 2 Days

New Delhi, Jul 25 (PTI) Investors' wealth eroded by Rs 8.67 lakh crore in two days of sharp fall in the equity market, where the benchmark Sensex tanked 1.52 per cent.

Persistent foreign fund outflows and heavy selling in financial, IT stocks have dragged the markets lower.

In the past two trading days, the 30-share BSE Sensex has dropped 1,263.55 points or 1.52 per cent.

Following the sharp fall in equities, the market capitalisation of BSE-listed firms fell by Rs 8,67,406.75 crore to Rs 4,51,67,858.16 crore (USD 5.22 trillion) in two days.

On Friday, the Sensex tanked 721.08 points or 0.88 per cent to settle at over a month's low of 81,463.09. The 50-share NSE Nifty dropped 225.10 points or 0.90 per cent to a month's low of 24,837.

"Nifty ended lower for the second consecutive day, declining 225 points to close below the 25K mark at 24,837 (-0.9 per cent). Financial stocks, particularly Bajaj Finance, led the sell-off due to concerns over asset quality. Global uncertainties, lack of progress in the India-US trade negotiations, and continuous selling by foreign investors further contributed to the market's negative performance," Siddhartha Khemka, Head of Research-Wealth Management at Motilal Oswal Financial Services Ltd, said.

Among Sensex firms, Bajaj Finance declined 4.73 per cent post its June quarter earnings announcement. Power Grid, Infosys, Tech Mahindra, Bajaj Finserv, Trent, Tata Motors, NTPC and Tata Steel were also among the laggards.

However, Sun Pharma and Bharti Airtel emerged as the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,133.69 crore on Thursday, according to exchange data.

"Subdued corporate results and lacklustre global cues triggered a broad-based sell-off across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure.

"Investor sentiment remained fragile amid ongoing uncertainty over US-India tariff negotiations and the ECB (European Central Bank) maintaining the status quo, with rate cuts deferred until clearer insights emerge on the inflationary impact of trade developments," Vinod Nair, Head of Research at Geojit Investments Limited, said.

The BSE smallcap gauge tanked 1.88 per cent and midcap index dropped 1.46 per cent.

Utilities slumped 2.37 per cent, power tumbled 2.36 per cent, oil & gas (2.11 per cent), industrials (1.88 per cent), capital goods (1.83 per cent), IT (1.65 per cent) and metal (1.64 per cent).

BSE Healthcare emerged as the only gainer.

As many as 2,892 stocks declined while 1,117 advanced and 145 remained unchanged on the BSE.