New Delhi: Investors’ wealth got wiped out by Rs 8.88 lakh crore in two days of market slump due to profit-taking and growing tensions along the Indo-Pak border following the terror attack at Pahalgam in Jammu & Kashmir.
On Friday, the 30-share BSE barometer tanked 588.90 points or 0.74 per cent to settle at 79,212.53. During the day, it dropped 1,195.62 points or 1.49 per cent to 78,605.81.
In two days, the benchmark has lost 903.96 points or 1.12 per cent.
The market capitalisation of BSE-listed firms declined by Rs 8,88,975.14 crore to Rs 4,21,58,900.91 crore (USD 4.93 trillion) in two days.
Experts said worries over growing geopolitical tensions after Tuesday’s Pahalgam terror attack weighed on market sentiment.
“Benchmark indices extended losses on Friday in a volatile session on rising tensions between India and Pakistan in the aftermath of terror attack in J&K.
“Investors also looked to book profits ahead of weekend after markets posted sharp gains in recent sessions. All the major sectors, except IT, posted losses,” Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.
Among Sensex firms, Adani Ports, Axis Bank, Eternal, Bajaj Finserv, Power Grid, Bajaj Finance, Tata Motors, Tata Steel, NTPC and Maruti were the biggest laggards.
Axis Bank declined over 3 per cent after the country’s third largest private sector lender reported a sharp rise in loan loss provisions and a steep fall in the trading income for the last quarter of 2024-25. The bank’s profit declined marginally in the March quarter to Rs 7,117 crore, from Rs 7,130 crore in the year-ago period.
However, Tata Consultancy Services, Tech Mahindra, Infosys, UltraTech Cement, IndusInd Bank, Hindustan Unilever and ICICI Bank were the gainers.
The BSE smallcap gauge tanked 2.56 per cent and midcap dropped 2.44 per cent.
Among BSE sectoral indices, services dropped 3.11 per cent, utilities (2.96 per cent), realty (2.87 per cent), power (2.77 per cent), consumer discretionary (2.28 per cent), industrials (2.19 per cent) and capital goods (2.06 per cent).
IT and BSE Focused IT ended higher.
“After a positive start supported by favourable global cues, Indian benchmark indices declined sharply. This was on account of profit-booking which came in as cross-border tensions between India and Pakistan escalated, following the terrorist attacks in Pahalgam, Kashmir,” Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.
As many as 3,246 stocks declined while 719 advanced and 119 remained unchanged on the BSE.
“Investor sentiment turned cautious amid escalating tensions along the Indo-Pak border. Mid and smallcap stocks bore the brunt of the sell-off, driven by their elevated valuations and growing concerns over potential earnings downgrades following a muted start to the earnings season,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
