Investors lost Rs 3.66 lakh crore on May 18 over rising number of covid-19 cases and economic stimulus failing to address demand side concerns of the sagging Indian economy. Global markets were nervous as tensions between the Trump administration and China over the origins and handling of coronavirus.
Market capitalisation on BSE fell to Rs 119 lakh crore compared to Rs 122.66 lakh crore on May 15. The erosion in investor wealth came after Sensex plummeted 1,068 points to 30,028 points. Nifty index closed 313 points or 3.43 % lower to finish at 8,823.
As per the provisional exchange data, foreign institutional investors were net sellers in the capital market, as they sold equity shares worth Rs 2,388.04 crore on Friday. Contrary to this, domestic investors bought Rs 1,225.53 crore worth equities on Friday.
IndusInd Bank (10%), HDFC (7.42%) , Maruti Suzuki (7.17% ) and Axis Bank (7.55%) were the top losers on Sensex. Of 30 Sensex stocks, only TCS (2.72%) and Infosys (1.73%) closed higher. BSE midcap and small cap indices lost 3.87% and 2.92% , respectively. Banking stocks were top losers with BSE bankex tanking 1443 points to 20,132.
Bank Nifty lost 1260 points to 17,573. BSE sectoral indices such as banking, auto, metal, oil and gas and realty plunged up to 6.69 per cent, 5.51%, 3.97% , 4.34% and 5.22%, respectively.
Apart from the failure of stimulus to boost market sentiment, the extension of nationwide lockdown until May 31 weighed upon sentiments.
Ajit Mishra, VP -Research at Religare Broking said, "Markets started the week on a pessimistic note and shed over 3 percent. It seems the details of the stimulus package fell short of market expectations, which triggered a sharp reaction on the downside.
The economic package largely focused on providing credit support and guarantees and somewhere failed to touch upon the immediate need to boost consumption. Further, the rising number of cases is another factor that is constantly haunting the investors. We have been maintaining our negative view on markets and expect more pain ahead."