It was mayhem on D-street on Thursday morning following a massive drop in domestic stocks — a stock market crash in which investors lost about Rs 4 lakh crore in a cataclysmic five minutes.
Against a market value of Rs 1,38,39,750 crore for BSE listed companies on Wednesday, the combined market capitalisation of these companies got eroded to Rs 134.38 lakh crore in the initial trades, according to BSE data.
Just a little over a month back, on August 30, the market valuation of all BSE-listed companies stood at Rs 1,59,34,696 crore.
The big loss happened as the market fell by 1,030.40 points to slip below the key 34,000-mark in early trade. Overall, as the Sensex recovered and settled about 750 points below Wednesday’s close, investor wealth worth Rs 2.63 lakh crore was eroded from BSE-listed companies.
Hemang Jani, head-advisory, Sharekhan by BNP Paribas, said, “Mirroring global peers, the domestic stock market took a beating on Thursday with the Nifty 50 Index plunging more than 200 points on concerns regarding the ongoing trade wars between the US and China, rising oil prices and IMF raising doubts on the stability of the global financial system have kept investors on the edge. We continue to maintain a cautious view on the market and we feel that NBFC stocks may continue to be under pressure post the IL&FS crisis which has caused liquidity problems in the system.”
NIFTY index, considered as a broader equity market index, has corrected approximate 13 per cent since August 28, 2018. Market has corrected due to various factors.
On Wednesday, the benchmark Dow Jones Industrial Average fell by over 800 points in its worst ever drop since February triggered by a rout in frontline technology stocks.
The market's fall by close to 13 per cent since August 29 peak has resulted in all the gains made in 2018 getting wiped out as on Thursday the benchmark index, Sensex, closed at 34,001 and Nifty 50
The Indian markets have been on a falling spree since the end of August which intensified towards the end of September.