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Investors lose Rs 5.61 lakh crore in last two trading sessions

BusinessToday.In     July 8, 2019

Investors have lost Rs 5.61 lakh crore in market wealth  in the last two sessions on BSE. On Friday when Finance Minister Nirmala Sitharaman presented her maiden Budget, investor wealth eroded by Rs 2.22 lakh crore.

On Budget day, Sensex rose to 40,032 level gaining 124 points intra day before the Budget speech started. However, the index tanked 467 points intra day to hit a low of 39,441 after FM Sitharaman finished her maiden Budget speech.

On Friday, Sensex fell over 394 points to 39,513 post Sitharaman 's Budget speech, while Nifty50 fell 135 points to 11,811 level.

In trading session today , investors lost Rs 3.39 lakh crore in market wealth as market reacted to Budget 2019 presented by Parliament on Friday.

From Rs 151.35 lakh crore market wealth on July 5 when Finance Minister Nirmala Sitharaman presented her first Budget, market capitalization of BSE listed firms dipped to Rs 147.96 lakh crore in trade today.

Domestic equity benchmark BSE Sensex plummeted 793 points to extend losses for a second straight session, dragged by losses in index major HDFC Bank, L&T and Bajaj Finance, amid Union Budget overhang and heavy selloff in global equities.

After plunging over 907 points during the day, the 30-share index settled 792.82 points or 2.01 per cent lower at 38,720.57.

The broader NSE Nifty sank 252.55 points, or 2.14 per cent, to 11,558.60.

According to traders, the Union Budget proposal to raise public shareholding threshold and higher tax incidence for foreign portfolio investors and high networth individuals continued to spook domestic investors.

Besides overhang from the Union Budget, domestic equities extended losses tracking a major selloff in global equities, traders said.

Other Asian markets ended significantly lower as hopes of steep cuts in interest rates by the US Federal Reserve were crushed after the world's largest economy posted better-than-expected jobs data Friday.

Shanghai Composite Index ended 2.58 per cent lower, Hang Seng plunged 1.54 per cent, Nikkei 0.98 per cent and Kospi tumbled 2.20 per cent. On the currency front, the Indian rupee depreciated 30 paise to 68.72 against the US dollar.

 Edited by Aseem Thapliyal

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