Dalal Street loses over $100 billion in 5-day fall

Five red days on the bourses and investors saw over $100 billion going down the drain.

By Zee Media Bureau | Last Updated: Aug 12, 2017, 08:59 AM IST
Dalal Street loses over $100 billion in 5-day fall

New Delhi: Five red days on the bourses and investors saw over $100 billion going down the drain, as an across-the-board selling pressure dragged down the benchmark Sensex by over 1,100 points.

As per a report in the Times of India, “Indian investors have lost nearly $100 billion (Rs 6.4 lakh crore) with the Bombay Stock Exchange's market capitalisation now at Rs 133.1 lakh crore.”

Gripped by fear psychosis due to geo-political aftershocks, key stock market indices were on a sticky wicket for the fifth day today as both Sensex and Nifty fell over 1 percent to hit their one-month lows.

Both indexes ended nearly 3.5 percent lower for the week on Friday, snapping a five-week winning streak, marking their worst week since mid-February 2016.

Meanwhile, across the globe, the dent in investors' wealth was more than $1 trillion in the current week, a Reuters report said.

"Investors across the globe continued to pare risky positions amid rising geo-political tensions between the US and North Korea... Domestic sentiment was also adversely affected after the mid-year economic survey today said there are downside risks to the Indian government's growth forecast of 6.75-7.5 percent for 2017-18," said Karthikraj Lakshmanan, Senior Fund Manager Equities, BNP Paribas Mutual Fund.

Of late, market has been reeling under pressure after regulatory clampdown after Sebi's Monday directive imposing trading curbs on suspected 331 shell companies and mounting geopolitical tensions between the US and North Korea.

Sentiment remained depressed, largely in sync with weak Asian markets and a lower opening in Europe. Market has been going through a consolidation phase after hitting life highs last week.