Indian stock market slips below Rs 60 lakh cr level
Mumbai: Amid a huge sell-off for the second consecutive day, the Indian stock market on Monday slipped below the Rs 60 lakh crore mark in terms of total valuation of all listed companies.
Besides, the market's dollar valuation remained below the trillion-dollar level for the second straight day, as it slipped further to USD 947 billion (Rs 59,80,065 crore).
While the stock market benchmark Sensex has fallen by over 1,000 points in two successive trading sessions, the rupee also lost further ground today and hit a new bottom to close at 63.13 against the US dollar after its biggest single-day drop of 148 paise in a decade.
The BSE 30-stock benchmark index today lost 290.66 points to close at 18,307.52, after a plunge of 769 points in its last trading session on Friday.
"Market sentiment has turned weak after rupee continued to weaken despite a number of steps from the RBI to curb the currency fall. Also, weakness in global markets and speculation over the US rolling back its stimulus package in near-term has battered investors' buying sentiment," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.
Indian stock market's valuation had moved out of trillion-dollar league on August 6, but regained that level on August 8. However, continuing weakness in rupee and stocks once again pushed it out of this elite global league last week on August 16.
India had first entered the trillion-dollar club in June 2007, but moved out in September 2008, amid the global slowdown. It again got back into the elite league in May 2009 and had largely remained there since then, except for some brief periods including once in 2012.
The rupee weakness has been a key force behind the dollar -valuation plunge in the recent months.
Since the beginning of the current fiscal in April 2013, though the rupee valuation of Indian stock market has fallen by nearly 6.38 percent, its dollar valuation has plunged by 21.67 percent. The rupee has depreciated by over 16 percent during this period.
With India out of this league, only about a dozen stock markets across the world now enjoy a trillion-dollar status. These include the US, UK, Japan, China, Canada, Hong Kong, Germany, France, Switzerland, Australia and South Korea.