Bear run at stock markets is costing investors dearly, with value worth over Rs 100 crore on an average being eroded in every single minute of trade so far this year.
In total, the stock market wealth has come down by a whopping over Rs 11 lakh crore since the beginning of 2011, as the benchmark Sensex plummeted by over 3,000 points.
The total average loss for every investor also stands at a staggering amount of Rs 10 lakh, taking into a total of little over one crore investors present in the market.
The Sensex has come down sharply from 20,509.09 points at the end of 2010 to 17,463.04 points at the end of today’s trade.
During the same time period, investors’ total wealth, measured in terms of cumulative value of their holdings in all listed stocks, has plunged from Rs 72,96,725.79 crore on December 31 last year to the current level of Rs 61,94,190.42 crore.
While we are in the second month of the year, there have been 28 days of trade so far in 2011 after taking into account the holidays. On these days, the trade has been conducted for a total of 182 hours or 10,920 minutes, as markets remain open from 9 am to 3.30 pm only.
Taking into account a total of about 182 hours of trade during these 28 days, the average loss for investors has been Rs 39,376 crore in every day of trade.
At the same time, the investors have lost an average of Rs 10.96 crore in every minute of trade, while the per—second loss works out to be about Rs 1.6 crore.
There are about 1.9 crore demat accounts in the country, but the total number of active stock market investors are estimated at little over one crore, after taking into consideration the inactive accounts and the fact that some might have more than one account.
Accordingly, the average loss for every investor would be more than Re one for every second of trade, while the cumulative average loss for every investor so far in 2011 stands at over Rs 10 lakh.
However, there are some investors, mostly promoters, whose market value loss of whose stock holdings runs into thousands of crores.
The cumulative loss for all the promoters together is estimated at about Rs 6,00,000 crore so far in 2011.
On the other hand, the market value has come down by an approximately Rs 5,00,000 crore for all the other types of investors, including mutual funds, other domestic and foreign institutional investors, HNIs and retail investors.