[ad_1]
NEW DELHI: Investors have lost a whopping Rs 14.60 lakh crore in five trading sessions amid a steep fall in BSE Sensex and broader Nifty.
On Wednesday, Sensex plummeted nearly 523 points to settle at 64,049 – finishing in red for the fifth day running.
Meanwhile, Nifty declined by 159.60 points or 0.83 per cent to 19,122.15. In the five sessions, the index lost around 690 points.It has fallen 2.70% since the onset of the Israel-Hamas military conflict on October 7.
As a result, the market capitalisation of BSE-listed companies eroded Rs 14,60,288.82 crore to Rs 3,09,22,136.31 crore in five days.
The market slump comes amid mounting tensions in the Middle East and higher valuations of Indian stocks.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said IT stocks led the slump in the backdrop of persisting global turbulence.
“Higher valuations of Indian stocks have been a concern and the current global turmoil is allowing investors to reduce their equity exposure.”
Among the Sensex firms, Infosys fell the most by 2.76 per cent. Bharti Airtel, NTPC, Tata Motors, IndusInd Bank, Bajaj Finance, ICICI Bank, Tech Mahindra, Titan and Axis Bank were among the major laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Investor sentiment is on edge as tensions in West Asia continue to drag the market. Despite a drop in oil prices and an optimistic view of the progressing Q2 results season, investors took a cautious approach due to the expectation that a higher interest rate scenario would continue slowing future growth.”
“The market was waiting for an opportunity for profit-booking – the recent hike in bond yields to 5 per cent, increased geopolitical tensions risking a flare-up in the Middle East as well and early in-line corporate results have all just provided the platform for much-awaited correction,” said Pawan Bharaddia, Co-founder, Equitree.
Further correction likely
With the conflict between Israel and Hamas escalating, experts said that further slump is expected.
“Further correction in Indian shares could be expected,” said Santosh Meena, head of research at Swastika Investmart.
“The slide, which is triggered by fluctuations in US bond yields and the Mideast crisis, has also caused a significant retreat in mid- and small-caps after a period of exuberance,” Meena added.
Analysts at HSBC and InCred Equities also expect the consolidation in domestic equities to continue.
(With inputs from agencies)
On Wednesday, Sensex plummeted nearly 523 points to settle at 64,049 – finishing in red for the fifth day running.
Meanwhile, Nifty declined by 159.60 points or 0.83 per cent to 19,122.15. In the five sessions, the index lost around 690 points.It has fallen 2.70% since the onset of the Israel-Hamas military conflict on October 7.
As a result, the market capitalisation of BSE-listed companies eroded Rs 14,60,288.82 crore to Rs 3,09,22,136.31 crore in five days.
The market slump comes amid mounting tensions in the Middle East and higher valuations of Indian stocks.
Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd, said IT stocks led the slump in the backdrop of persisting global turbulence.
“Higher valuations of Indian stocks have been a concern and the current global turmoil is allowing investors to reduce their equity exposure.”
Among the Sensex firms, Infosys fell the most by 2.76 per cent. Bharti Airtel, NTPC, Tata Motors, IndusInd Bank, Bajaj Finance, ICICI Bank, Tech Mahindra, Titan and Axis Bank were among the major laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said: “Investor sentiment is on edge as tensions in West Asia continue to drag the market. Despite a drop in oil prices and an optimistic view of the progressing Q2 results season, investors took a cautious approach due to the expectation that a higher interest rate scenario would continue slowing future growth.”
“The market was waiting for an opportunity for profit-booking – the recent hike in bond yields to 5 per cent, increased geopolitical tensions risking a flare-up in the Middle East as well and early in-line corporate results have all just provided the platform for much-awaited correction,” said Pawan Bharaddia, Co-founder, Equitree.
Further correction likely
With the conflict between Israel and Hamas escalating, experts said that further slump is expected.
“Further correction in Indian shares could be expected,” said Santosh Meena, head of research at Swastika Investmart.
“The slide, which is triggered by fluctuations in US bond yields and the Mideast crisis, has also caused a significant retreat in mid- and small-caps after a period of exuberance,” Meena added.
Analysts at HSBC and InCred Equities also expect the consolidation in domestic equities to continue.
(With inputs from agencies)
[ad_2]
Source link