Investors lose Rs 9.28 lakh crore as stock markets fall for 2nd day

NEW DELHI: Stock investors took a severe hit on Monday as key indices slumped to more than seven-month lows due to widespread selling amid increased uncertainty over US trade policy, wiping out Rs 9.28 lakh crore of market wealth.

The market capitalisation of BSE-listed companies tanked Rs 9,20,654.51 crore to Rs 4,10,31,199.48 or USD 4.75 trillion. The market breadth was negative as 3,588 shares declined, 532 advanced and 114 stocks remain unchanged.

The 30-share BSE barometer plunged by 824.29 points or 1.08 per cent to close at 75,366.17, a level not seen since June 2024. During the day, the barometer plummeted 922.87 points or 1.2 per cent to a low of 75,267.59.

"Dalal Street continues to bleed, extending its losses from Friday last week, as the wind of slowing corporate earnings swayed away hopes of earnings revival and bolstered pessimism about tepid earnings.

"Volatility geared up during the day, driven by a mix of factors such as heightened anticipation around the fiscal budget, concerns about slowing corporate earnings, and uncertainties surrounding the upcoming Federal Open Market Committee (FOMC) meeting," Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox, said.

Geopolitical tensions and continued selling by foreign institutional investors (FII) further hit the sentiment. Mid and small-cap continue to face the brunt of heightened volatility as richer valuations trigger sell-off across the segment, Ranadive said.

Among Sensex shares, HCL tech fell the most by 4.49 per cent followed by Zomato, Tech Mahindra, PowerGrid and Tata Motors.

Shares of Infosys, Tata Steel, HDFC Bank, Reliance Industries and Bharti Airtel also declined, dragging the index to more than seven-month lows.

ICICI Bank, however, bucked the trend and rose 1.39 per cent following upbeat third-quarter results. Hindustan Unilever, M&M, SBI and L&T were among the other gainers.

The BSE SmallCap gauge declined 3.51 per cent and Midcap index slumped 2.68 per cent.

Among the sectoral indices, telecommunication plummeted the most by 3.83 per cent and Focuses IT by 3.34 per cent. IT (3.31 per cent), Teck (3.04 per cent), Metal (2.86 per cent), Healthcare (2.73 per cent), Industrials (2.63 per cent), Oil & Gas and Commdities (2.42 per cent each) and Utilities (2.41 per cent) also declined.

"Going ahead, the market will likely continue to be driven by volatility, as uncertainty over RBI MPC meet in the coming week and the FOMC meet during the current week will likely weigh in on the market, Ranadive added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,015.46 crore on Monday, according to exchange data.