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Investors become poorer by over Rs 3 lakh cr in two days of mkt fall

Jan 6, 2020, 17:09 IST
PTI
New Delhi, Jan 6 () Investor wealth tumbled by a whopping Rs 3.36 lakh crore in two successive sessions of decline in the equity market following escalation in tensions in the Middle East.

Equity markets fell for second consecutive session, with the 30-share key BSE index plummeting 787.98 points, or 1.90 per cent, to close at 40,676.63, on Monday. During the trade, it dropped 850.65 points to 40,613.96.

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The Sensex had ended 162.03 points, or 0.39 per cent, lower at 41,464.61 on Friday as well.

Led by the weakness in equities in two consecutive trading sessions, the market capitalisation of BSE-listed companies plunged by Rs 3,36,559.82 crore to Rs 1,53,90,312.60 crore.

"Indian markets started the week on a negative note amid escalation of geopolitical tensions between the US and Iran. Rising crude oil prices and adverse rupee movement too impacted the sentiments," Religare Broking Ltd VP - Research Ajit Mishra said.

"Amongst the broader markets, BSE midcap and smallcap underperformed. All the sectoral indices witnessed heavy selling pressure and ended with losses wherein auto, banking and metals were the top losers," he added.

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US President Donald Trump on Sunday vowed "major retaliation" if Iran tries to avenge the killing of its key military commander Qasem Soleimani.

Brent crude oil futures surged nearly 2 per cent to USD 69.81 on Monday, while the rupee depreciated 24 paise against the US dollar to 72.04 (intra-day).

On the Sensex chart, Bajaj Finance was the top loser, dropping 4.63 per cent, followed by SBI, IndusInd Bank, Maruti and HDFC.

At the BSE, 1,944 stocks declined, while 604 advanced and 181 remained unchanged.

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The S&P BSE Smallcap index closed 1.96 per cent lower, while the BSE Midcap index fell 2.31 per cent. SUM RVK

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