New Delhi: Investors’ wealth slumped by a whopping Rs 16.77 lakh crore in the last four trading sessions as jittery markets nursed deep losses amid elevated crude oil prices and fears of a prolonged geopolitical crisis.
Besides, unabated foreign fund outflows and the rupee hitting record lows kept investors risk-averse, fuelling selling across financial markets.
On Tuesday, the 30-share BSE Sensex tanked 1,456.04 points, or 1.92 per cent, to settle at 74,559.24.
In the last four trading sessions, the BSE gauge has tumbled 3,399.28 points, or 4.36 per cent.
The market capitalisation of BSE-listed companies eroded by Rs 16.77 lakh crore to Rs 4,56,02,981.70 crore (USD 4.77 trillion) in four days.
Indian equity markets extended their decline as mounting pressures from the global macro backdrop and domestic factors weighed heavily on investor sentiment, Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
“Stalled US–Iran negotiations, continued disruption around the Strait of Hormuz driving a fresh surge in energy prices, rupee slipping to record lows, persistent FII outflows, and broad-based weakness across sectors, including IT and realty, collectively triggered a decisive sell-off through the session,” Ponmudi said.
Brent crude, the global oil benchmark, traded 3 per cent higher at USD 107.4 per barrel.
On Tuesday, a total of 3,412 stocks declined, while 869 advanced and 129 remained unchanged on the BSE.
From the Sensex pack, Tech Mahindra, Adani Ports, HCL Tech, Tata Consultancy Services, Titan and Bharat Electronics were among the major laggards.
On the other hand, the State Bank of India was the only winner from the pack.
In the broader market, the BSE MidCap Select index tanked 2.92 per cent, and the SmallCap Select index declined by 2.73 per cent.
Sectorally, realty dropped 4.22 per cent, Focused IT (3.61 per cent), services (3.51 per cent), IT (3.37 per cent), consumer durables (3.35 per cent) and industrials (3 per cent).
“Unlike a routine profit-booking phase, the current decline appears to be driven by a broader confidence shock in the market. Investors are increasingly interpreting recent policy messaging and austerity-oriented commentary as an indication that policymakers may be preparing for a tougher macroeconomic environment ahead,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
The pressure on Indian equities is now being amplified by a macro “triple hit” — crude oil prices hovering near USD 105–107 per barrel, the rupee slipping to a fresh record low against the US dollar, and continued aggressive FII outflows, he added.
