Investors lose over Rs 6.71 lakh cr as markets crash Equity investors became poorer by over Rs 6.71 lakh crore on Thursday as domestic benchmark indices tumbled amid a global market meltdown.The 30-share BSE benchmark Sensex tanked 1,416.30 points or 2.61 per cent to settle at 52,792.23, tracking weak global markets and persistent foreign fund outflows. In line with the weak market trend, the market capitalisation of BSE-listed firms tumbled by Rs 6,71,051.73 crore to stand at Rs 2,49,06,394.08 crore. “Till the time FIIs remain net sellers, the south-bound journey will be difficult to reverse,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd. From the Sensex firms, Wipro, HCL Technologies, Infosys, TCS, Tech Mahindra, Tata Steel, IndusInd Bank and Kotak Mahindra Bank were the major laggards.ITC, Dr Reddy’s and PowerGrid were the only gainers. Barring Shanghai, other Asian markets ended lower, with Seoul, Hong Kong and Tokyo losing up to 2.54 per cent.Equity exchanges in Europe were also trading sharply lower in the afternoon session. Stock markets in the US had ended deep in the red on Wednesday.Meanwhile, international oil benchmark Brent crude declined 1.27 per cent to USD 107.7 per barrel. Foreign institutional investors remained in selling mode, offloading shares worth a net Rs 1,254.64 crore on Wednesday, as per stock exchange data.“Markets plunged sharply lower and lost over 2.6 per cent, pressurised by weak global cues. The meltdown in the US markets, on fear of aggressive rate hikes, rattled investors and triggered a weak start. “The situation worsened further due to heavy selling in the index majors across sectors wherein IT and metal majors were among the top losers,” said Ajit Mishra, VP – Research, Religare Broking Ltd.
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FII and DII trades: Foreign Institutional Investors (FII) have been net buyers of domestic stocks for successive days now. On Wednesday, FIIs pumped in Rs 2,347 crore. Domestic Institutional Investors (DII) have been net sellers, pulling out Rs 510 crore yesterday.
IPO watch: Syrma SGS Technology enters the final day of bidding today. So far the issue, that opened last week, has been subscribed 2.27 times. Retail investors have subscribed their portion 2.66 times while NIIs have bid for their quota 3.58 times and QIB portion has been bid for 0.71 times.