Sharp fall in markets erode Rs 5.64 lakh cr from investors' wealth

New Delhi, May 20 (PTI) Investors' wealth eroded by Rs 5.64 lakh crore on Tuesday as markets fell sharply, with the benchmark Sensex tumbling 873 points, dragged down by decline in blue-chips HDFC Bank, Reliance Industries and ICICI Bank.

Retreating from early highs, the 30-share BSE benchmark Sensex tanked 872.98 points or 1.06 per cent to settle at 81,186.44. During the day, it dropped 905.72 points or 1.10 per cent to 81,153.70.

The market capitalisation of BSE-listed firms eroded by Rs 5,64,594.68 crore to Rs 4,38,03,259.51 crore (USD 5.13 trillion).

"Benchmark indices ended sharply lower on Tuesday, as the Sensex and Nifty-50 fell notably amid global jitters sparked by Moody's downgrade of the US credit rating. The sell-off was further intensified by FIIs turning net sellers and widespread profit-booking following a recent rally.

"Heavyweights like HDFC Bank and Reliance Industries saw significant selling pressure, dragging the benchmarks lower. All major sectors also closed in red with losses," Satish Chandra Aluri, Analtst, Lemonn Markets Desk, said.

The lack of fresh domestic triggers and lingering global uncertainty — especially concerning US fiscal stability — has kept sentiment subdued, he added.

From Sensex firms, Eternal dropped the most by 4.10 per cent. Maruti, Mahindra & Mahindra, UltraTech Cement, Power Grid, Nestle, Bajaj Finance, Hindustan Unilever and Asian Paints were also among the laggards. HDFC Bank dropped by 1.26 per cent and index major Reliance Industries declined by 1.13 per cent.

Tata Steel, Infosys and ITC were the gainers.

All sectoral indices ended lower. Auto declined 2.13 per cent, consumer discretionary (1.81 per cent), utilities (1.64 per cent), services (1.53 per cent), industrials (1.36 per cent) and telecommunication (1.35 per cent).

As many as 2,531 stocks declined while 1,438 advanced and 135 remained unchanged on the BSE.

The BSE midcap gauge tanked 1.65 per cent and smallcap index dropped 0.96 per cent.

"With the lack of major positive triggers and prevailing uncertainty over US fiscal stability, investors opted for profit-booking and adopted a cautious stance. Selling pressure was widespread as participants awaited more clarity on the India-US trade agreement.

"Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation, which may lead FIIs to scale back their positions in the domestic market," Vinod Nair, Head of Research, Geojit Investments Limited, said. PTI SUM HVA

Source: PTI