Stock Market Crash: Rs 22 Lakh Crore Wealth Eroded in 3 Days
By Rediff Money Desk, New Delhi Aug 06, 2024 18:31
Indian stock markets plunged in the last three days, wiping out Rs 22 lakh crore of investor wealth. Sensex tanked 4%, driven by global cues and weak economic data.
![Stock Market Crash: Rs 22 Lakh Crore Wealth Eroded in 3 Days](https://im.rediff.com/money/2021/jan/15rupee.jpg)
Illustration: Uttam Ghosh/Rediff.com
New Delhi, Aug 6 (PTI) Investors' wealth eroded by a whopping Rs 22 lakh crore in three days of market slump with the BSE benchmark Sensex tanking 4 per cent.
In three days, the Sensex tumbled 3,274.48 points or 3.99 per cent. The massive correction came after the benchmark index hit its all-time high of 82,129.49 on August 1.
Market capitalisation of BSE-listed firms tumbled Rs 22,02,996.27 crore to reach Rs 4,39,59,953.56 crore (USD 5.24 trillion) in three trading days.
On Monday, the Sensex plummeted 2,222.55 points or 2.74 per cent to settle at 78,759.40. During the day, it tanked 2,686.09 points or 3.31 per cent to 78,295.86.
The benchmark ended 166.33 points or 0.21 per cent lower at 78,593.07 on Tuesday even after surging 1,092.68 points or 1.38 per cent in intra-day trade.
"Negative sentiment continued to prevail in the US and European equities which weighed on local markets as indices fell sharply towards the close on profit-taking in banking, telecom and auto shares. After surging over 1,000 points in early trade, markets steadily erased gains and slipped into the red," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
A sharp plunge in Japanese and other global markets on Monday played havoc at the Dalal Street. Also, weak jobs data caused panic among investors of a possible recession in the US market.
Following the sharp decline in equities on Monday, the market capitalisation of BSE-listed firms dropped by Rs 15,32,796.1 crore to Rs 4,41,84,150.03 crore (USD 5.27 trillion).
"The domestic market tried to rebound mirroring the Asian markets. However, momentum was short-lived and closed below the threshold level of 24,000. Investors are watching the appreciating Yen, weak US economic data, and rising geopolitical tensions," said Vinod Nair, Head of Research, Geojit Financial Services.
On Tuesday, in the broader market, the BSE midcap gauge declined 0.71 per cent and smallcap index went lower by 0.57 per cent.
Among the indices, telecommunication dropped 1.15 per cent, financial services fell 1.03 per cent, consumer durables 0.92 per cent, bankex 0.76 per cent and consumer discretionary 0.48 per cent.
IT, realty, FMCG and services were the gainers.
"Markets traded volatile after Monday's decline and settled marginally lower amid mixed signals. Initially, a recovery in global indices prompted a gap-up start, but pressure on heavyweights, particularly in the banking sector, erased the gains," Ajit Mishra SVP, Research, Religare Broking Ltd, said.
In three days, the Sensex tumbled 3,274.48 points or 3.99 per cent. The massive correction came after the benchmark index hit its all-time high of 82,129.49 on August 1.
Market capitalisation of BSE-listed firms tumbled Rs 22,02,996.27 crore to reach Rs 4,39,59,953.56 crore (USD 5.24 trillion) in three trading days.
On Monday, the Sensex plummeted 2,222.55 points or 2.74 per cent to settle at 78,759.40. During the day, it tanked 2,686.09 points or 3.31 per cent to 78,295.86.
The benchmark ended 166.33 points or 0.21 per cent lower at 78,593.07 on Tuesday even after surging 1,092.68 points or 1.38 per cent in intra-day trade.
"Negative sentiment continued to prevail in the US and European equities which weighed on local markets as indices fell sharply towards the close on profit-taking in banking, telecom and auto shares. After surging over 1,000 points in early trade, markets steadily erased gains and slipped into the red," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
A sharp plunge in Japanese and other global markets on Monday played havoc at the Dalal Street. Also, weak jobs data caused panic among investors of a possible recession in the US market.
Following the sharp decline in equities on Monday, the market capitalisation of BSE-listed firms dropped by Rs 15,32,796.1 crore to Rs 4,41,84,150.03 crore (USD 5.27 trillion).
"The domestic market tried to rebound mirroring the Asian markets. However, momentum was short-lived and closed below the threshold level of 24,000. Investors are watching the appreciating Yen, weak US economic data, and rising geopolitical tensions," said Vinod Nair, Head of Research, Geojit Financial Services.
On Tuesday, in the broader market, the BSE midcap gauge declined 0.71 per cent and smallcap index went lower by 0.57 per cent.
Among the indices, telecommunication dropped 1.15 per cent, financial services fell 1.03 per cent, consumer durables 0.92 per cent, bankex 0.76 per cent and consumer discretionary 0.48 per cent.
IT, realty, FMCG and services were the gainers.
"Markets traded volatile after Monday's decline and settled marginally lower amid mixed signals. Initially, a recovery in global indices prompted a gap-up start, but pressure on heavyweights, particularly in the banking sector, erased the gains," Ajit Mishra SVP, Research, Religare Broking Ltd, said.
Source: PTI
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