Home / Markets / Stock Markets /  Investor wealth erodes by 6.47 lakh cr as markets tumble for second day

Investors' wealth tumbled over 6.47 lakh crore in two days of market crash amid weak cues from global markets.

Indian indices extended their losing run on Monday, dragged down by heavyweights Reliance, ITC, TCS, and M&M as weakness in global stocks due to interest rate hike worries ruined investors' mood. High crude prices, inflation, and cut in India's economic growth forecast added to the already fragile sentiments.

The Sensex slipped 617.26 points, or 1.08%, to close at 56,579.89, while Nifty50 lost 218 points to end at 16,953.95. All the sectors ended in the red with metals, realty, IT, FMCG, oil& gas being among the worst hit.

The two-day fall in equities wiped out 6,47,484.72 crore, bringing the market capitalisation of BSE-listed firms to 2,65,29,671.65 crore.

"Indian markets extended losses after taking cues from its Asian peers. Nifty opened lower and remained under selling pressure throughout the day," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

"We expect markets to remain volatile amid worries about inflation and its impact on corporate earnings, while also fuelling concerns over aggressive US Fed rate hikes in the near term," he added.

On the 30-stock index, the most gains were made by HDFC Bank, HDFC, ICICI Bank, among others, while Tata Steel, NTPC, TechM, and Reliance were among the biggest losers.

On Nifty50, Bajaj Auto, ICICI Bank, and HDFC Bank made the most gains, while Coal India, BPCL, and Tata Steel were among the biggest laggards.

"Global markets were painted red due to below-par earnings results, adding fresh concerns to elevated inflation, oil prices, war uncertainties and supply issue. Fear of waning demand due to prolonged Covid lockdown in China led to oil prices tumbling. Continued FII selling in India along with other global uncertainties is favouring bear trend in the short-term," said Vinod Nair, Head of Research at Geojit Financial Services.

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