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Last Updated : Mar 23, 2020 06:16 PM IST | Source: Moneycontrol.com

Coronavirus-led lower circuit wipes out over Rs 14 lakh cr from market

Investors lost more than Rs 60 lakh crore of wealth in the last one month as the market itself crashed more than 35 percent on global turmoil led by the virus.


The market continued its southward journey with benchmark indices hitting lower circuit for the third time on March 23 despite SEBI's measures to curb volatility.

Investors, especially FIIs, looked really worried about the likely recession fears as infected cases by novel coronavirus increased sharply outside of China. Italy hit the most with death toll more than 5,400 and infected cases over 59,000, while more than 7,000 people already recovered.

Globally, the reported infected cases have risen to around 3 lakh with fatilities around 13,000.

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The market hit 10 percent lower circuit for the second time in March, before signing off the session with a loss of 3,934.72 points or 13.15 percent at 25,981.24 on the Sensex. The Nifty50 plunged 1,135.20 points or 12.98 percent to 7,610.25 as bears seem to be tightened grip over Dalal Street.

Investors lost more than Rs 14.2 lakh crore of their wealth as the BSE market capitalisation plunged to Rs 101.86 lakh crore from Rs 116 lakh crore seen in the previous session.

"It's tough to say where the markets will stop. It's all about what kind of Nifty earnings hit one is expecting and what multiple are you ready to give these markets," Vinay Pandit, Head - Institutional Equities at IndiaNivesh told Moneycontrol.

"In the current scenario, it looks like investors are not willing to give a multiple of more than 11-13x and presuming overall earnings for FY21E will be down by 20 percent across the board, in which case the bottom is somewhere between 6,800 and 8,000 for the Nifty," he said.

But these are excellent times for long term quality value picks at cheap valuations, he added.

Investors lost around Rs 60 lakh crore of wealth in the last one month as the market itself crashed more than 37 percent on global turmoil led by the virus.

All sectoral indices traded in the red with Bank, Auto, FMCG, Metal and Realty falling the most which lost 11-17 percent, while the Nifty Midcap and Smallcap indices lost over 13 percent.

On the global front, China's Shanghai Composite, Hong Kong's Hang Seng, Australia's ASX 200 and South Korea's Kospi fell 3-6 percent following 4.5 percent fall in Dow Jones on last Friday.

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First Published on Mar 23, 2020 12:26 pm
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