Investor wealth tanks Rs 4.55 lakh cr as markets tumble

Investor wealth on Monday tumbled by Rs 4,55,914.68 crore following heavy selloff in the equity market where the BSE benchmark Sensex plummeted 839 points amid fresh India-China border tensions.

Investor wealth on Monday tumbled by Rs 4,55,914.68 crore following heavy selloff in the equity market where the BSE benchmark Sensex plummeted 839 points amid fresh India-China border tensions. After rallying 543 points in morning trade, the BSE Sensex surrendered all gains to close at 38,628.29, a decline of 839.02 points or 2.13 per cent.

Reacting to the weakness in equities, the market capitalisation of BSE-listed companies tumbled by Rs 4,55,914.68 crore to Rs 1,53,76,305.47 crore. "Markets started the week on a feeble note and lost over 2 per cent. Though favorable global led a firm start, news of fresh tension on India-China broader triggered sharp decline across the board. The benchmark indices erased all gains and were dragged to negative territory," said Ajit Mishra, VP - Research, Religare Broking Ltd.

In a fresh incident in eastern Ladakh, the Chinese army carried out "provocative military movements" to "unilaterally" change the status quo on the southern bank of Pangong lake on the intervening night of August 29-30, but the attempt was thwarted by the Indian troops, the Army said on Monday.   Sun Pharma was the top loser in the Sensex pack, plunging over 7 per cent, followed by SBI, Bajaj Finserv, Bajaj Finance, NTPC, ICICI Bank, Kotak Bank, M&M and Maruti. From the 30-share pack, only ONGC and TCS ended on a positive note. All BSE sectoral indices closed with losses, with BSE realty, healthcare, basic materials and utilities declining up to 4.70 per cent. In the broader market, the BSE mid-cap and small-cap indices tanked up to 4.37 per cent.

On the BSE, 2,329 companies declined, while 536 advanced and 150 remained unchanged. "Although markets opened with gains, it quickly succumbed to a bout of selling, following profit-booking after the recent runup. The losses extended, following reports of increased tensions along the border with China. With increased geopolitical tensions, markets also traded uncertainty and this could impact the market behaviour in the coming days," Vinod Nair, Head of Research at Geojit Financial Services said.