Investors become poorer for more than Rs 3 lakh crore as markets fall
NEW DELHI: The wealth of investors plummeted by a huge Rs 3.36 lakh crore in two successive sessions of decline in the stock market after the escalation of tensions in the Middle East.
Stock markets fell for the second consecutive session, with the key BSE index of 30 shares that fell 787.98 points, or 1.90 percent, to close at 40,676.63, on Monday. During the exchange, it fell 850.65 points to 40,613.96.
Sensex had finished 162.03 points, or 0.39 percent, lower to 41,464.61 on Friday as well.
Led by the weakness of equity in two consecutive trading sessions, the market capitalization of the companies listed on the BSE collapsed in Rs 3.36,559.82 million rupees to Rs 1,53,90,312.60 rupees.
Indian markets began the week with a negative note amid the escalation of geopolitical tensions between the United States and Iran. The rise in crude oil prices and the adverse movement of the rupee also affected feelings, said the vice president of research at Religare Broking Ltd, Ajit Mishra.
Among the largest markets, the medium and small capitalization of BSE had a lower yield. All sectoral indexes witnessed strong sales pressure and ended with losses in which cars, banks and metals were the main losers, he added.
The president of the United States, Donald Trump, promised Sunday great reprisals if Iran tries to avenge the murder of its key military commander Qassim Suleimani.
Brent crude futures rose almost 2 percent to $ 69.81 on Monday, while the rupee depreciated 24 hikes against the US dollar at 72.04 (intraday).
In the sensex table, Bajaj Finance was the main loser, with a fall of 4.63 percent, followed by SBI, IndusInd Bank, Maruti and HDFC.
In BSE, 1,944 shares declined, while 604 advanced and 181 remained unchanged.
The S&P BSE Smallcap index closed 1.96 percent lower, while the BSE Midcap index fell 2.31 percent.