Investors lose Rs 7.34 lakh cr as Sensex tanks over 1,000 points

NewsDrum Desk
New Update

New Delhi, May 9 (PTI) Investors' wealth on Thursday eroded by Rs 7.34 lakh crore as markets took a heavy beating, with the BSE Sensex tumbling 1,062.22 points.

Declining for the third day running, the 30-share BSE benchmark dropped 1,062.22 points or 1.45 per cent to settle at 72,404.17. During the day, it tanked 1,132.21 points or 1.54 per cent to 72,334.18.

The market capitalisation of BSE-listed companies eroded by Rs 7,34,513.48 crore to Rs 3,93,34,896.14 crore (USD 4.71 trillion).

On May 2, the mcap of BSE-listed firms reached an all-time peak of Rs 4,08,49,767.90 crore.

"Markets buckled under relentless selling pressure as investors turned risk averse in the ongoing poll season and further lightened their equity exposure to avoid being caught off guard. As the election season is heating up, investors are trimming their equity exposure at a faster pace, which can be seen from the drubbing that mid and small-caps received," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

From the Sensex basket, Larsen & Toubro tanked 6 per cent after March quarter earnings.

Asian Paints, JSW Steel, ITC, Bajaj Finance, IndusInd Bank, Tata Steel, NTPC, Bajaj Finserv, HDFC Bank, Reliance Industries and Power Grid were among the laggards.

In contrast, Tata Motors, Mahindra & Mahindra, State Bank of India, Infosys and HCL Tech were the gainers.

In the broader market, the BSE smallcap gauge declined 2.41 per cent and midcap index dropped 2.01 per cent.

Among the indices, oil and gas lost 3.41 per cent, capital goods dropped 3.37 per cent, metal (3.13 per cent), industrials (2.92 per cent), utilities (2.59 per cent) and commodities (2.39 per cent).

On the other hand, auto emerged as the major gainer.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,669.10 crore on Wednesday, according to exchange data.

"The market is continuously witnessing pressure ahead of the election outcome. We don't have any global reason for this correction, while some uncertainty ahead of the big event is causing profit-booking in the market.

"Our market has been largely driven by domestic investors, including both HNIs and institutional investors, for the last few months. Now, they are sitting on the sidelines for the last couple of days and taking some profit off the table ahead of the big event, while FIIs are continuously selling in our market, which is pushing the market lower," Santosh Meena, Head of Research, Swastika Investmart Ltd, said.

Arvinder Singh Nanda, Senior Vice President, Master Capital Services Ltd, said, "The fall in the market is primarily attributed to the prevailing uncertainty surrounding the general elections. Moreover, muted cues from the Q4 earnings of large-cap companies have further dampened investor sentiment". PTI SUM SUM BAL BAL