Market crash destroyed assets of around ₹2.75 lakh crore investors in a single day

The Sensex closed 651.85 points or 1.08% lower at 59,646.15. The benchmark had touched a high and low of 60,411.20 and 59,474.57 respectively earlier today.

Broad-based selling pressure was witnessed in 30 major stocks with major draggers such as IndusInd Bank, Bajaj Twins, Tata Steel, SBI, Maruti Suzuki, Reliance Industries and HUL among others. L&T outperformed its peers and benchmarks – and emerged as the top gainer.

Banking, auto, consumer durables, metals and oil and gas indices were the worst hit. Large-cap and mid-cap performance in the broader market was impacted.

After the above, approx 2.75 lakh crores of investors’ assets on D-Street were wiped out, BSE’s market cap remained on Friday 2,77,77,931.64 crore less than Thursday’s 2,80,52,760.91 crores – resulting in . has declined 2,74,829.27 crore assets. From August 10 to August 18, the wealth of investors increased more than 8.08 lakh crore before correcting on August 19.

As of August 19, 2022, RIL is the most valuable company with a market cap of over . More than 17.68 lakh crore, while TCS comes up with a valuation of approx. 12.39 lakh crore, and HDFC Bank 8.3 lakh crore. The market cap of Infosys and HUL is 6.72 lakh crore and 6.2 lakh crore.

The market cap of other leading companies is – ICICI Bank at 6.06 lakh crore, on SBI 4.64 lakh crore, on HDFC 4.47 lakh crore, on Bajaj Finance 4.42 lakh crore, and on LIC 4.34 lakh crores. These companies are in the top 10 most valuable on BSE in terms of market cap.

Meanwhile, the Nifty 50 closed at 17,758.45, down 198.05 points or 1.1%. The benchmark had recorded an intraday high and low of 17,992.20 and 17,710.75 respectively. Bank Nifty breaks over 670 points.

On overall market performance, Vinod Nair, Head of Research, Geojit Financial Services, said, “Profit booking amid weak global cues impacted domestic indices as concerns about hike in interest rates weighed on the markets. Additionally, dollar indices and FIIs. The recent rally in the U.S. is turning out to be a net. Sellers have stunned the bulls. Index heavyweights see broad-based selling, pulling the index further down.”

Moreover, in the interbank foreign exchange market, the Indian rupee closed a holiday-shortened week lower against the US dollar. Sharp comments from the US Federal Reserve bolstered the greenback which was already up against a basket of currencies. Investors are worried about the economic slowdown in the market. The rupee on Friday closed at 79.7750 against its previous close where the local unit was at 79.6725 against the dollar.

Foreign fund inflows into the Indian market remained strong in August. FPI has made tremendous earnings in 19 days of this month 44,481 crore in the equity market, which is the highest year-on-year purchase. FPIs were net sellers in the first six months of FY22. Due to latest investments, total outflows to FPIs have come down 1,67,888 crore year-on-year.

market Outlook

Hemant Kanawala, Senior Executive Vice President & Kotak Mahindra Life Insurance Company’s Head Equity said, “Overall monsoon is progressing well (up 9.5% above normal, cumulatively), with some spatial weakness over East India. While sowing progress has been relatively weak, Crops can affect production, keeping India’s food stocks healthy which in turn will help in keeping food inflation under control.”

He added, “On the other hand, the recently concluded earnings season witnessed decent sales growth, with some pressure on gains from higher energy prices. Due to the recent correction in crude oil prices, margin pressure will ease in the next few quarters. should be.”

Going ahead, he said, “All eyes will be on the domestic improvement. Demand for the upcoming festive season is something that the markets will keep an eye on. The festive season demand is expected to pick up as it is the first normal festive season, which It is after COVID-19 and the rural sector may see a boom due to strong monsoon.

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