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Investors lost over Rs 1.57 lakh crore in Friday’s market rout

The market capitalisation of BSE fell from Rs 140.87 lakh crore to Rs 139.3 lakh crore. The Nifty managed to breach 10,000-mark and traded below it for a larger part of the day.

March 23, 2018 / 04:28 PM IST

The rout witnessed by the Indian market on Friday has eroded Rs 1.57 crore of investor wealth.

The market capitalisation of BSE fell from Rs 140.87 lakh crore to Rs 139.3 lakh crore, thanks to the Sensex’s 500-point intraday fall. The Nifty managed to breach 10,000-mark and traded below it for a larger part of the day.

Dragged by escalating trade tensions among global economies, the Indian market on Friday witnessed a gap-down opening, with the Nifty cracking the 10,000-mark.

“Indian equities fell sharply following clues in global equities, after US President imposed trade tariffs on China amid concerns that trade war could adversely affect global growth. It also saw pressure as one more banking fraud was detected by the CBI.

Indian macros have improved over last 3/4 quarters. Our markets will see improvement as we get into earnings season. However, there could be volatility in near term owing to global concerns,” Anita Gandhi Whole Time Director at Arihant Capital Markets told Moneycontrol.

Close

There was selling across the board, especially among metals, after news broke that China too had imposed import tariffs on 128 US goods.

As such, the Indian market has been on a consolidation mode since the start of the year, led by factors such as LTCG imposition, liquidity issues, rising bond yields and volatile global markets. But, among the reasons for the fall today were escalating trade war fears, crude price hike, Fed rate hike, new banking fraud and technical factors.

“Earlier we were struggling with our own issues and pressure from the global front has worsened the situation. Besides, the breakdown of major psychological support at 10000 will further add to the worries. Traders have no option but to stay with the trend and use bounce to create fresh shorts. Nifty has next support at 9900,” Jayant Manglik, President, Religare Broking said in a statement.
Moneycontrol News
first published: Mar 23, 2018 04:20 pm

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