Investors weakened by more than Rs 2.6 lakh crore due to selling in Tuesday’s shares
The snap-in five-day winning run for domestic equity indices shaved off over 2.6 lakh crore wealth of investors on Tuesday.
In a volatile trading session, the 30-share BSE Sensex fell over 700 points while the broader NSE Nifty fell over 200 points, with focus on the upcoming US Federal Reserve meeting.
The US central bank is expected to raise rates for the first time since the COVID-19 pandemic in its meeting that ends on Wednesday.
Retail inflation rose to 6.07 per cent in February, above the upper end of the Reserve Bank’s 2-6 per cent target band for the second consecutive month, so traders also became cautious.
Selling in the Indian stock market made investors poor by Rs 2.61 lakh crore on Tuesday. The market capitalization of listed companies on the BSE declined by Rs 2,61,145.72 crore to Rs 2,51,66,630.06 crore on Tuesday, in line with a weak trend in equities.
Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services said, “Domestic indices erased their early gains amid weakness in global markets. Also, retail inflation rose by 6.07 per cent in February, weighing on sentiment.”
“Investor sentiment was impacted by the events of the fourth round of sanctions against Russia in global markets, concerns about fresh cases of coronavirus in China and expectations of a US Fed interest rate hike,” he said.
This fall in equities comes despite oil prices falling nearly 6 per cent to fall above $100 levels for the second consecutive session.