Investor wealth slides by Rs 1 lakh cr as shares tank
Mumbai: Dragged down by massive selling in the stock market Monday, the total investor wealth -- measured by market capitalisation -- slumped by a whopping Rs 1 lakh crore as nearly two stocks out of three ended with losses.
The BSE 30-share index Sensex nosedived by 430.65 points or 2.14 percent to end the day at 19,691.67, marking the biggest fall since February 27, 2012, when the index had plunged nearly 478 points.
All the 30-Sensex components, ended the day down, with ITC emerging as the top loser falling by over 5 percent.
The NSE's Nifty lost 2.08 percent to close at 5,980.45.
Following the sell-off, stock market investors lost Rs 1 lakh crore with BSE ending with a market capitalisation of Rs 67,03,388.59 crore.
Market breadth was negative as 1,542 stocks closed down while just 808 scrips finished higher.
Experts attributed the sharp cut to profit-taking as the benchmark Sensex had gained nearly 9 percent since mid-April.
"After continuous buying interest for last four weeks, investors' seem to be sceptical of buying at higher levels. Many of the stocks had reached their all-time high levels and investors booked profits today," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.
Sentiments turned for the worse after April trade deficit data came out at USD 17.7 billion from USD 10 billion in March. This also sparked off fears that a perecived relief on the Current Account Deficit (CAD) front on account of fall in prices of commodities recently, may not hold true, traders said.