Rs 58 lakh crore investor wealth gone from record highs as bears run riot on Dalal Street
Aseem Thapliyal March 24, 2020
Investors lost Rs 58.71 lakh crore in market wealth since Sensex and Nifty hit their all time highs in January this year. Market capitalisation on BSE stood at Rs 101.86 lakh crore on Monday compared to market cap of Rs 160.57 lakh crore on January 20 when Sensex and Nifty hit record highs.
On Monday, indices were roiled after government imposed lockdown in several states of the country to contain the rising number of coronavirus cases.Investor sentiment was hit when several companies stopped manufacturing in their plants and shut offices till March 31 complying with government orders. Sensex crumbled over 4,000 points intra day and closed 3,934 points lower at 25,981.
This was the index's biggest closing fall in its history. Nifty lost 1,135 points to 7,610, its worst ever session performance. Sensex also logged its biggest intra day fall of 4,035 points to 25,880 compared to the previous close of 29,915. Nifty too fell 1,162 points intra day to 7,583 against previous close of 7,945.NSE VIX index, which reflects rising volatility in Indian market, zoomed 7.27% to 71.98.
On Tuesday, Sensex managed to close 692 points higher at 26,674 with investors losing Rs 56.88 lakh crore since January 20.
However, the picture was very bright in the middle of January when Sensex and Nifty hit their all-time highs with analysts predicting the former would rise to 45,000 by the second half of this year.
But a Union budget below expectations and rising number of coronavirus cases across the globe halted the dream run of Indian indices . On January 20, Sensex hit its all-time high of 42,273 and Nifty touched a record peak of 12,430.
It has lost 16,292 points since then. Nifty too has declined 4,820 points to 7,610 in a short duration of over two months. Coronavirus cases have been rising across India and the world which has dented investor sentiment.
Till date, 492 positive cases of coronavirus have been reported in India with 10 people losing their lives. COVID-19 pandemic has spread across at least 190 countries. The outbreak is having a major impact on global economy and the stock markets.