Investor wealth saw an erosion of Rs 1.41 lakh crore on Monday dragged down by massive selling in the stock market where the BSE benchmark index tumbled by nearly 300 points.
Following extreme weakness in stocks, the market capitalisation of BSE-listed companies slumped Rs 1,41,423 crore to Rs 1,31,98,829 crore. The market capitalisation on Friday stood at Rs 1,33,40,008.49 crore. The 30-share index settled lower by 295.81 points or 0.93 percent at 31,626.63.
The market capitalisation of BSE-listed companies slumped Rs 4,89,129 crore to Rs 1,31,98,829 crore in just 4 trading sessions. The market capitalisation on the BSE stood at 1,36,87,958 on 19 September when Nifty hit a fresh record high.
The S&P BSE Small and Midcap index were the biggest casualties – down 1.1 percent, and 2.02 percent respectively.
The fall in smallcap index was led by losses in Infibeam Incorporation down by nearly 17 percent, followed by Tinplate which dropped by 9.7 percent, and JBM Auto slipped 9.33 percent.
Shoppers Stop rose 20 percent in the S&P BSE Smallcap index after the US-based retailer Amazon's investment arm Amazon.com NV Investment Holdings LLC said it will acquire 5 percent stake in the company for Rs 179.26 crore.
The S&P BSE Midcap index slipped 1.1 percent or 177 points weighed down by losses in Central Bank of India, Gruh Finance, L&T Holdings, Adani Enterprises, Amara Raja Batteries, Sun TV, JSPL, and Pantaloon Fashion etc. among others.
BSE realty melted the most by 3.4 percent. Healthcare, capital goods and industrials too added to the weakness.
On BSE, 1960 stocks declined, while 595 advanced and 177 remained unchanged.
The 50-share Nifty index closed 91.80 points lower at 9872. The index fell towards its crucial support level of 9800 but later recovered in the last one hour of the trading session. The index hit its intraday low of 9,816.05.
The Nifty index continued its selling pressure for the fifth consecutive session and corrected towards 9820 zones. It has been making lower top – lower bottom from last four trading sessions on the daily scale and broken its trend line support by connecting the swing lows of 9075, 9448, 9685 and 9900 zones.
“The Nifty formed a Bearish candle followed by a Bearish Engulfing pattern on the weekly chart indicates that bear is keeping the tight trip. Now if it sustains below 9880 zones then weakness could continue towards 9820 then 9750 zones,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“On the upside, it needs to negate the negative pattern by holding above 9928-9950 zones to get the market stability,” he said.
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