Sensex plummets over 700 points, Rs 2.52 lakh crore eroded from investors' wealth

New Delhi: Markets extended sharp fall on Monday amidst negative global cues along with caution ahead of the results of Assembly elections in five states eroding over Rs 2.25 lakh crore from investors' wealth.

The BSE Sensex tanked 713.53 points or 2 percent to close at 34,959.72 while the NSE Nifty dived 205.25 points or 1.92 percent to 10,488.45.

Led by the sharp fall in equities, the market capitalisation of BSE-listed companies slumped Rs 2,52,478.89 crore to Rs 1,37,90,774.75 at today's closing. The total market capitalisation of BSE listed companies stood at Rs 1,40,43,253.64 on December 7.

According to market observers, heavy selling pressure in banking, consumer goods, oil and gas, capital goods and automobile stocks, along with continuous outflow of foreign funds accelerated the downward trajectory of the equity indices.

On Tuesday, the results of the state Assembly elections in Rajasthan, Madhya Pradesh, Chattishgarh, Telangana and Mizoram will be declared. These elections are considered as a crucial indicator of public mood before the Lok Sabha elections which are due in April-May 2019.

Last Friday - the previous trade session - bargain hunting and lower crude oil prices lifted the key Indian equity market indices by around 1 percent.

All sectoral indices on the BSE and NSE ended in the red, led by realty, banking, metal, pharma, pharma and financial stocks. Kotak Bank shares cracked over 6 percent after the bank said it had moved the Bombay High Court against RBI's decision with respect to the bank reducing promoter holding using preference shares.

Motors, Adani Ports, Bharti Airtel, Sun Pharma, L&T, PowerGrid, HDFC, Axis Bank and Bajaj Auto, falling up to 4 percent. Coal India and Maruti were the only two gainers on the 30-share index, rising up to 0.79 percent.

With Agency Inputs