Investors Lose Rs 4.12 Trillion as Markets Slump

Market Overview

In a significant downturn, investors’ wealth diminished by Rs 4.12 trillion during Friday’s morning trade, following a substantial market correction. This decline was influenced by weak global market trends and new foreign fund outflows. The 30-share BSE Sensex fell by 896.7 points, or 1.09%, reaching 81,304.46.

Market Capitalization and Sector Performance

The market capitalization of BSE-listed companies dropped sharply by Rs 4,12,152.83 crore to Rs 4,61,56,748.42 crore ($5.50 trillion). The Sensex had reached an all-time high of 82,725.28 earlier in the week.

Among the 30 Sensex constituents, State Bank of India, HCL Technologies, Reliance Industries, Adani Ports, Larsen & Toubro, and Mahindra & Mahindra were the major decliners. Conversely, Bajaj Finance, Asian Paints, and Hindustan Unilever emerged as gainers.

Global Influences

Asian markets also showed weakness, with Seoul, Tokyo, Shanghai, and Hong Kong trading lower. The US markets had ended mostly negative on Thursday. Additionally, Foreign Institutional Investors (FIIs) sold equities worth Rs 688.69 crore on Thursday, reversing their previous buying trend.

Oil and Future Trends

Global oil benchmark Brent crude was up by 0.15% to $72.81 a barrel. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market’s near-term direction would be significantly influenced by the upcoming US jobs data.

On Thursday, the BSE benchmark had failed to maintain initial gains, closing 151.48 points or 0.18% lower at 82,201.16.

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