Investor wealth sinks by Rs 3.79 lakh cr in two days of market fall

Sluggish corporate earnings, lacklustre global markets, FPI and slowdown concerns have played spoilsport for the markets.

Illustration: Uttam Ghosh/Rediff.com

Investor wealth eroded by over Rs 3.79 lakh crore in two days of market fall where the BSE benchmark cracked 879 points amid sluggish corporate earnings and FPI concerns.

Markets have extended losses for the second consecutive session. Led by weakness in equities, the market capitalisation (m-cap) of BSE-listed companies plunged Rs 379,047.89 crore to Rs 1,45,34,758.53 crore in the last two days.

The Sensex had slumped 318 points on Thursday.

Sluggish corporate earnings, lacklustre global markets, FPI and slowdown concerns have played spoilsport for the markets.

Replying to a debate on the Finance Bill in Parliament after market hours on Thursday, Finance Minister Nirmala Sitharaman dismissed the argument that the proposed hike in tax on the super-rich would spook foreign portfolio investors (FPIs).

"Markets plunged sharply lower and lost over a per cent, in extension to Thursday's fall.

“Though it opened with an uptick but fizzled out in no time, citing continuous FPI outflow, geo-political tension between the US and Iran and anxiety around the earnings," said Ajit Mishra, vice president, research, Religare Broking Ltd.

From the 30-share pack, 26 companies fell - led by Mahindra & Mahindra Ltd, Bajaj Finance Ltd, Tata Motors Ltd and Hero MotoCorp.

"Today's correction was in response to a combination of surcharge on FPIs, tepid results by a couple of companies and rising slowdown concerns," said Arun Thukral, MD & CEO, Axis Securities.

At the BSE, 1,877 scrips declined, while 664 advanced and 130 remained unchanged.

More than 500 scrips hit a 52-week low on the BSE.