Investor wealth falls Rs 6.98 lakh crore in two days of market crash

NEW DELHI: Investors witnessed an erosion of wealth of Rs 6.98,419.77 crore in two days of market downturn as benchmark indices failed to maintain initial gains on Tuesday and closed lower.

The BSE benchmark index ended at 31,453.51, down 261.84 points or 0.83 percent on Tuesday.

The BSE barometer had dropped 2,002.27 points or 5.94 percent on Monday.

After the two-day drop in equities, the market capitalization of companies listed on BSE plummeted from Rs 6.98,419.77 crore to Rs 1.22.43,201.05 crore.

Markets became volatile and benchmark indices closed negatively. The losses were led by finance. Markets are trading with uncertainty about the impact of the closure measures and their effect on earnings, said Geojit Financial Services chief research officer Vinod Nair.

In the broader market, the midcap and smallcap indices fell 0.97 percent each.

The benchmark indices ended with a cut of more than half a percent, in line with the drop of the previous day. Initially, the bias was slightly positive, thanks to strong global signals. However, the profits faded in no time as the day progressed, said Ajit Mishra, vice president of research at Religare Broking Ltd.

We feel that muted gains combined with impending uncertainty about the economic situation due to the prolonged blockade have begun to haunt participants, Mishra added.

State Bank of India was the main laggard among the 30-share EEB indicator package, down 4.64 percent, followed by Bajaj Finance, Asian Paints, Axis Bank, Kotak Bank and ICICI Bank.

On the other hand, M&M, PowerGrid, ONGC and Reliance Industries were among the main winners.

By sector, the BSE realty, bankex, finance, health, capital goods, consumer goods and industrial indices fell to 2.97 percent.