The wealth of investors of Rs 5 lakh crore disappeared as the markets fell
NEW DELHI: Monday collapsed almost by Rs 5 lakh crore in the first operations, as stock markets collapsed when tracking the global sale of shares amid growing uncertainty about the economic impact of the coronavirus outbreak.
The market capitalization (m-cap) of the companies listed on the BSE experienced a massive decrease after the 30-share index fell 1515.01 points, or 4.03 percent, to 36,061.61. The NSE Nifty also broke 417.05 points, or 3.80 percent, to 10,572.40.
The carnage in the stock market ended the wealth of investors worth Rs 4.79,820.87 rupees, bringing the total cap to Rs 1.39.39,640.96 rupees in BSE.
The maximum limit of the companies listed on the BSE was Rs 1.44,31,224.41 rupees at the end of Friday's negotiation.
Traders believe that the growing fear of recession in major economies due to the outbreak of coronavirus has led to variable income to a downward spiral.
The total number of confirmed cases in the continent reached 80,735 at 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, said the National Health Commission from China (NHC).
All sensex components were traded in red, led by losses at ONGC, Reliance, IndusInd Bank, Tata Steel, L&T, ICICI Bank and Infosys.
Traders said investors' feelings also remained fragile amid incessant outflows of foreign funds.
On a net basis, foreign institutional investors sold shares worth Rs 3,594.84 rupees on Friday, according to data available on the stock exchanges.
According to Moody's Global Macro Outlook 2020-21, the coronavirus will damage economic growth in many countries until the first half of 2020.
The global spread of the coronavirus is resulting in simultaneous supply and demand shocks, he said.
We expect these shocks to materially slow down economic activity, particularly in the first half of this year. Therefore, we have revised our 2020 growth forecasts for all G20 economies, the report added.
In BSE, 1,745 scripts decreased, while 222 advanced and 101 remained unchanged.
Meanwhile, oil prices fell freely, falling almost 30 percent to $ 32.11 per barrel after Saudi Arabia's main exporter launched a price war in response to a failure by major producers to arrive. to an agreement to support energy markets.