Nearly ₹5 lakh crore investor wealth wiped off in early trade as markets plunge

A view of the BSE building in Mumbai.   | Photo Credit: Paul Noronha

Investor wealth plummeted by nearly ₹5 lakh crore in early trade on March 9 as equity markets crashed tracking global equity selloff amid rising uncertainty over the economic impact of coronavirus outbreak.

Market capitalisation (m-cap) of BSE-listed companies saw a massive decline after the 30-share index plunged 1515.01 points, or 4.03%, to 36,061.61. The NSE Nifty too cracked 417.05 points, or 3.80%, to 10,572.40.

The carnage in the equity market wiped out investor wealth worth ₹4,79,820.87 crore, taking the total m-cap to ₹1,39,39,640.96 crore on the BSE.

The m-cap of BSE-listed companies stood at ₹1,44,31,224.41 crore at the end of trading on Friday. Traders believe mounting fear of recession in major economies due to the COVID-19 outbreak has sent equities into a downward spiral.

The overall confirmed cases on the mainland reached 80,735 by the end of Sunday which included 3,119 people who have died so far, 19,016 patients undergoing treatment and 58,600 patients discharged after recovery, China’s National Health Commission, (NHC) said.

All Sensex components were trading in the red, led by losses in ONGC, Reliance, IndusInd Bank, Tata Steel, L&T, ICICI Bank and Infosys. Traders said investor sentiments also remained fragile amid incessant foreign fund outflows.

On a net basis, foreign institutional investors sold equities worth ₹3,594.84 crore on Friday, data available with stock exchanges showed.

According to Moody’s Global Macro Outlook 2020-21, coronavirus will hurt economic growth in many countries through first half of 2020. The global spread of the COVID-19 is resulting in simultaneous supply and demand shocks, it said.

“We expect these shocks to materially slow economic activity, particularly in the first half of this year. We have therefore revised our 2020 baseline growth forecasts for all G-20 economies,” the report added.

On the BSE, 1,745 scrips declined, while 222 advanced and 101 remained unchanged.

Meanwhile, oil prices were in a free fall, plunging nearly 30% to $32.11 per barrel after top exporter Saudi Arabia launched a price war in response to a failure by leading producers to strike a deal to support energy markets.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Jun 22, 2021 12:23:11 AM |

Next Story