Around ₹5 trillion of investors’ wealth wiped out in five trading sessions

Mumbai: Investors have lost a massive ₹4.89 trillion in five sessions. Market wealth, stood at ₹205.16 trillion on February 15 declined to ₹200.26 trillion on BSE on Monday amid profit-booking, mixed global markets and rise in covid-19 cases contributed to the decline of benchmark indices.

In five sessions, Sensex has tumbled 2,409.81 points to 49,744.32 from 52,154.13 on February 15. Similarly, Nifty crashed 639 points to close at 14675.70 points.

On Monday, benchmark indices ended lower amid profit-booking in heavyweight stocks. In line with weak global equities, Sensex ended 1145 points lower at 49,744.32 and Nifty lost 306 points to 14,675. Investor wealth fell by ₹3.72 trillion on BSE.

Deepak Jasani, Head of Retail Research, HDFC Securities said "Nifty has fallen 5% from its all time high in about 5 sessions. Indian equities came under selling pressure due to Cautious trade in markets abroad, Slowing FPI inflows, profit taking and breach of key technical levels. Rising crude oil prices that could impact the macros and inflation and rising 10 year Gsec yields were the key local factors that shook the equity markets. Also markets have run up quite sharply since end January 2021".

On Nifty, Eicher Motors was the top loser falling 5.09% to ₹2586.10. M&M, Tech Mahindra, Dr Reddy's and Axis Bank were other losers falling more than 4% on the 50-stock index.

Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers said “India markets opened on a flattish note tracking mixed Asian market peers with China trading in losses as PBoC kept interest rates unchanged while Japan was trading with marginal gains. During the afternoon session markets started to drift lower and traded in red as amid fresh concerns over the increase in the number of infected COVID-19 cases contributed to the fears that the economic impact will be much larger than earlier estimates.

"Also, the major western markets failed to provide any support as it opened to trade in red with equity investors growing concern about rising bond yields in recent weeks which could hurt high-growth companies reliant on easy borrowing. On sectoral front, today's fall was led by IT, Banks, Financial, Realty, Auto sectors while the only sector to have traded in green remained Metals” he added.

BSE Mid cap index and BSE Small cap index lost 269 points and 201 points respectively to end at 19,766 and 19,662.

Market breadth was negative with 2,006 stocks ending lower against 1025 ending higher on BSE. 148 stocks were unchanged.

Number of shares rising to their 52-week highs stood at 223 against 44 touching their 52-week lows. Tracking the negative sentiment in the market, 277 stocks hit their upper circuits against 287 falling to their lower circuits, respectively.

Foreign institutional investors have net bought $35.49 billion in equity and are net sellers of $4.47 billion in debt markets respectively since the beginning of fiscal year, while domestic institutional investors sold ₹1.39 trillion in stocks, according to data on the exchanges.