Investors’ wealth eroded by 76,196.54 crore rupees on Wednesday as the market witnessed a sell-off amid growing concerns over possible aggressive interest rate hikes to rein in high inflation.
The market capitalization of BSE-listed companies – which is also an indicator of investor wealth – fell from Rs 76,196.54 crore to Rs 2,85,94,997.40 crore amid the Sensex 30-share in down 224.11 points or 0.37% to 60,346.97 points.
On Tuesday, as the markets gained for the fourth consecutive session, the market valuation stood at Rs 2,86,71,193.94 crore.
The 30-stock index rebounded more than 1,200 points from early lows before settling at 60,346.97 points, a loss of 224.11 points or 0.37% from the closing level of tuesday.
The broader NSE Nifty closed down 66.30 points or 0.37% at 18,003.75 points.
The Sensex had plunged 1,150 points to a low of 59,417.12 points, while the Nifty fell to a low of 17,771.15 points in early trading on Wednesday, following deep losses in US markets.
Following the weak trend in equities, the market capitalization of BSE-listed companies had fallen by Rs 2.21 lakh crore in initial trades. However, markets showed a steady recovery and pared most of the losses to stabilize at 4%.
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, Indian markets have shown strong resilience in the face of negative global signals.
As the markets opened down 1.6%, they showed a steady rally throughout the day to erase all of the opening loss and managed to close near the high of the day with a marginal loss of 0.4%.
“Inflationary environment under control compared to global peers, strong flows from retail, domestic and foreign institutions continue to boost domestic equities.
“Although there may be bouts of volatility due to unfavorable global indices. Supporting base buying at lower levels is giving much needed strength to Indian markets and any sharp declines will be a good opportunity to buy stocks Indians,” Khemka added.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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