New Delhi: Indian investors’ wealth plunged Rs 13 lakh crore in valuation over the past 2 days as the BSE Sensex declined 2 per cent in consecutive trading days. Investors also turned cautious on higher inflation data in October, against the backdrop of continued FII outflows. Disappointing quarterly earnings also weighed down the key indices.
The Sensex was down 1,805.2 points or 2.27 per cent in 2 days, declining 984.23 points to 77,690.95 at market closing. The market cap of BSE-listed firms was down Rs 13,07,898.47 crore to Rs 4,29,46,189.52 crore ($5.09 trillion) during the period under consideration.
Out of all the listed companies on BSE, 3,299 stocks were down while 670 shares closed in green, and 98 scrips closed flat on Wednesday.
Inflation worries and muted Q2 earnings
The Reserve Bank of India’s upper tolerance limit of 6 per cent was breached by the Consumer Price Index of inflation to a 14-month high of 6.21 per cent in October. Food inflation continued to pose a challenge to RBI’s efforts to curb prices and eventually start back on a path to repo rate cuts. Near-term rate cuts by the central bank were ruled out, said Prashanth Tapse, Senior VP (Research) at Mehta Equities.
Muted Q2 earnings and not so encouraging consumption guidance from companies reporting their quarterly earnings also weighed down investor sentiment on Wednesday.
FIIs pull funds, investors bleed
The great oull out of funds by foreign investors continued to hurt Indian investors’ wealth. Markets have remained under pressure from FII selling, first, on account of the Chinese stimulus package announcement, and second, on account of Donald Trump’s win in the US presidential polls.
Trump’s return has spooked investors about trade tariffs and sent the US dollar soaring. FIIs are pulling out for better returns in China and the greenback. Foreign Institutional Investors sold shares worth Rs 3,024.31 crore on Tuesday, according to exchange data.
Sensex top gainers and losers
On the 30-share Sensex, Tata Steel, Mahindra & Mahindra, and Adani Ports were the top losers, while NTPC, Tata Motors and Infosys were the top gainers. Among broader indices, the BSE smallcap index was down 3.08 per cent, while the midcap index declined 2.56 per cent on Wednesday.
FII outflows and US dollar strength continued to hit wreak havoc on Indian investors’ wealth as a whopping Rs 13 lakh crore of value was wiped out of Indian markets in the past 2 days. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
