BackBears push markets off the cliff: Investors lose nearly ₹3.3 lakh cr in just two days on BSE
Sensex and Nifty 50 are in red since March 9th. That being said, BSE listed companies m-cap has dropped by nearly ₹3.3 lakh crore --- from March 8th level where m-cap was around ₹266.24 lakh crore.
PremiumSince the time US Fed has signalled for more and higher key rate hikes, global markets are in havoc as investors turn to bearish sentiment. Indian equities have also faced the brunt of the week global cues as they end the holiday shortened week in red with Friday witnessing the most losses. Sensex and Nifty 50 erased previous gains to drop for two days straight. This led to a significant correction in domestic benchmarks as investors lost nearly ₹3.3 lakh crore in just two days.
On Friday, on BSE, the listed equities market cap stood at nearly ₹262.95 lakh crore --- which is down by over ₹1.36 lakh crore from the previous day's print of ₹264.31 lakh crore.
Sensex dropped by 671.15 points or 1.12% to end at 59,135.13. While Nifty 50 plunged by 172.85 points or 0.98% to close at 17,416.75 on Friday
However, Sensex and Nifty 50 are in red since March 9th. That being said, BSE listed companies m-cap has dropped by nearly ₹3.3 lakh crore --- from March 8th level where m-cap was around ₹266.24 lakh crore.
For the current week, Sensex dipped by nearly 310 points or 0.52%, while Nifty 50 tumbled by 54.40 points or 0.31%.
Due to steep selloffs , BSE-listed equities erased the gains of over ₹2.82 lakh crore which was recorded between March 6th to 8th. Markets were closed for trading on March 7th due to the Holi festival.
Dr. Joseph Thomas, Head of Research, Emkay Wealth Management on the markets said, "the weakness displayed by the equity market during the course of the current week was generated by the recent developments abroad, and it reaffirms the close alignment of the local market with other major markets abroad."
According to Thomas, the statement from the Fed Chairman that the Fed would be prepared for an acceleration of the pace of rate hikes, if required, to enable it to contain inflation more rapidly and attain the target rate of inflation was a bit of a shock for the market participants who had already concluded that the Fed policy going ahead would be more moderate.
He added, this statement took the wind out of the sails for a while.
Among other remote factors that have been affecting the markets below the surface, as per Thomas, are the recent intensification of the Russian offensive on Ukrainian territories, and also the general perception that economic growth may be more sluggish than expected in many territories in the current year.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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