Investors become poorer by Rs 9.51 lakh cr as markets crash

Investors’ wealth plummeted by Rs 9.51 lakh crore on Monday morning due to a crash in equity markets, with the benchmark Sensex dropping over 2,400 points. The 30-share BSE benchmark fell 2,401.49 points to 78,580.46 in early trading. Following the sharp decline in equities, the market capitalization of BSE-listed firms dropped by Rs 9,51,771.37 crore to Rs 4,47,65,174.76 crore (USD 5.35 trillion) during morning trade.

Santosh Meena, Head of Research at Swastika Investmart Ltd., mentioned that global market fears, including concerns about a reverse Yen carry trade and a potential US recession due to poor jobs data, have impacted market sentiment.

This has led to the first meaningful correction in Indian equity markets after an extended global bull run. In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were trading sharply lower.

Japan’s benchmark Nikkei 225 stock index plunged as much as 8.1% early Monday, extending sell-offs seen in previous weeks due to worries about the US economy.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that geopolitical tensions in the Middle East are also influencing market dynamics.

Tata Motors, Maruti, Tata Steel, Infosys, Tech Mahindra, and JSW Steel experienced significant declines, while Hindustan Unilever, Sun Pharma, Nestle, and Asian Paints were trading positively. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,310 crore on Friday, according to exchange data.