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Market Slump: Investors Lose ₹5.49 Lakh Crore

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By Rediff Money Desk, New Delhi   Sep 06, 2024 17:38

Indian markets witnessed a significant correction on Friday, erasing ₹5.49 lakh crore of investor wealth, driven by global trends and FII outflows. The Sensex tumbled 1.24%, with major losses across sectors.
Market Slump: Investors Lose ₹5.49 Lakh Crore
New Delhi, Sep 6 (PTI) Investors' wealth plummeted by Rs 5.49 lakh crore on Friday as markets faced a massive correction tracking a weak trend in global peers and fresh foreign fund outflows.

Falling for the third day running, the 30-share BSE Sensex tumbled 1,017.23 points or 1.24 per cent to settle at 81,183.93. During the day, it plunged 1,219.23 points or 1.48 per cent to 80,981.93.

The BSE benchmark had hit its all-time high of 82,725.28 on Monday.

Following the weak trend in equities, the market capitalisation of BSE-listed firms slumped by Rs 5,49,925.16 crore to Rs 4,60,18,976.09 crore (USD 5.48 trillion).

"Markets witnessed intense profit-booking after the recent upsurge and key benchmark indices crumbled on fears a subdued US economic data could push Fed chairman to postpone rate cut decision.

"Investors trimmed their bullish bets ahead of the US jobs report, as any uptick in the numbers could prompt the Fed to maintain the status quo on interest rates," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

Among the 30 Sensex firms, State Bank of India tanked over 4 per cent. ICICI Bank, NTPC, HCL Technologies, Reliance Industries, Tata Motors, ITC, Axis Bank and Adani Ports were the major laggards.

Asian Paints, Bajaj Finance, JSW Steel and Hindustan Unilever were the gainers.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.

European markets were trading in the red. The US markets ended mostly in the negative territory on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 688.69 crore on Thursday after days of remaining buyers, according to exchange data.

"Domestic equities experienced one of its most significant single-day declines in the past month, driven by concerns over a potential slowdown in the US labor market.
"Investors turned cautious ahead of the US nonfarm payrolls and unemployment rate data to be released late today, which will offer insights into the magnitude of the rate cut in the upcoming US FOMC (Federal Open Market Committee) meeting," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

Meanwhile, global oil benchmark Brent crude climbed 0.36 per cent higher to USD 72.95 a barrel.

The BSE benchmark on Thursday failed to hold on to initial gains and declined 151.48 points or 0.18 per cent to settle at 82,201.16.
Source: PTI
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