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Investor wealth erodes by Rs 3.65 lakh cr as markets plummet

07:23 PM May 18, 2020 | Team Udayavani |

New Delhi: Investors became poorer by Rs 3,65,469.88 crore on Monday as the BSE benchmark crashed 1,069 points.

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The 30-share BSE index ended 1,068.75 points or 3.44 per cent lower at 30,028.98.

Following the weak trend in equities, the market capitalisation of BSE-listed companies dropped Rs 3,65,469.88 crore to Rs 1,19,00,649.71 crore.

“With the stimulus package announced by the government not seen as adequate considering the need of the hour and with infections continuing unabated, the markets ended down by around 3.4 per cent, in spite of positive global cues,” Vinod Nair, Head of Research at Geojit Financial Services said.

“Most measures may be seen as a long-term positive and markets were more worried about the immediate impact of these measures. With concerns about rising NPAs, financials were most affected. Uncertainty is likely to continue impacting the market performance,” he added.

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Markets ended sharply lower as the Rs 20 lakh crore economic package, announced in five tranches, failed to lift investors’ sentiment. Moreover, worries over growing number of COVID-19 cases in the country also led to selling pressure.

“Markets started the week on a pessimistic note and shed over 3 per cent. It seems the details of the stimulus package fell short of market expectations, which triggered a sharp reaction on the downside. The selling pressure was widespread wherein the banking, financials, auto and realty counters were trashed badly,” Ajit Mishra, VP – Research, Religare Broking Ltd said.

IndusInd Bank was the top laggard in the Sensex pack, cracking 10 per cent. Banks were the biggest contributor in the fall of the 30-share BSE index.

Sectorally, BSE bankex, finance, auto, realty, capital goods, oil and gas, metal and consumer durables indices sank up to 6.69 per cent, while IT and teck indices ended with gains.

In the broader market, midcap and smallcap indices plunged up to 3.87 per cent.

On the BSE, 1,770 companies declined, while 549 advanced and 160 remained unchanged.

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