Investors’ wealth erode by Rs 5.50 lakh crore in three days as markets fall on weak global trends-Telangana Today

The 30-share BSE Sensex fell 570.60 points or 0.85 per cent to settle at 66,230.24 on Thursday

New Delhi: With equity benchmark indices falling for the third day running on Thursday, investors’ wealth eroded by Rs 5.50 lakh crore during this time amid a weak trend in global markets and foreign fund outflows.

The 30-share BSE Sensex fell 570.60 points or 0.85 per cent to settle at 66,230.24 on Thursday. During the day, it dropped 672.13 points or 1 per cent to 66,128.71.

In three days, the benchmark has fallen by 1,608.39 points or 2.37 per cent.

The market capitalisation of BSE-listed companies eroded by Rs 5,50,376.85 crore to Rs 3,17,90,603.86 crore in three days.

“Bearish sentiment across global equities led to selling in the domestic market for the third straight session as investors fretted over the US Fed statement indicating one more rate hike later this year. Other negative catalysts like lingering overseas fund outflows, rising US Dollar index and treasury yields, and higher crude oil prices are making investors jittery,” Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the negative territory.

European markets were trading in the negative territory. The US markets ended in the red on Wednesday.

The US Federal Reserve left its key interest rate unchanged on Wednesday for the second time in its past three meetings, a sign that it’s moderating its fight against inflation as price pressures have eased. But, Fed officials also signalled that they expect to raise rates once more this year.

“Domestic market declined following a hawkish stance by the Fed chair and prolonged high interest rate trajectory which is not positive for a slowing global economy,” said Vinod Nair, Head of Research at Geojit Financial Services.

Mahindra & Mahindra, ICICI Bank, State Bank of India, IndusInd Bank, Kotak Mahindra Bank, Tata Motors, UltraTech Cement, Bajaj Finserv, Axis Bank and Power Grid were the major laggards among the Sensex firms.

Tech Mahindra, Asian Paints, Infosys, Bharti Airtel, Hindustan Unilever and Larsen & Toubro were the gainers.

In the broader market, the BSE midcap gauge fell 0.99 per cent and smallcap index declined 0.98 per cent.

Among the indices, bankex fell by 1.75 per cent, auto declined 1.58 per cent, financial services (1.35 per cent), realty (1.16 per cent), consumer discretionary (1 per cent), utilities (0.97 per cent), power (0.90 per cent) and commodities (0.75 per cent).

Teck emerged as the only gainer.