The equity markets crashed amid rising global uncertainty over the economic impact of coronavirus outbreak.

Sensex crashes over 1100 points nearly Rs 5 lakh crore investor wealth eroded
Money Stock Markets Friday, February 28, 2020 - 11:30

Domestic investor wealth plummeted by nearly Rs 5 lakh crore on Friday as equity markets crashed tracking global equity selloff amid rising uncertainty over the economic impact of coronavirus outbreak.

Market capitalisation (m-cap) of BSE-listed companies saw a massive decline after the 30-share index sank 1,100.27 points, or 2.77 per cent, to 38,645.39, and the NSE Nifty cracked 329.50 points, or 2.83 per cent, to 11,303.80.

Market capitialisation refers to the market value of a publicly traded company's outstanding shares. 

The carnage in the equity market wiped out investor wealth worth Rs 4,65,915.58 crore, taking the total m-cap to Rs 1,47,74,108.50 crore on the BSE.

At 9.50 a.m., the BSE Sensex was trading at 38,597.53, lower by 1,148.13 points or 2.89 per cent from the previous close of 39,745.66.

It had opened at the intra-day high of 39,087.47 and has so far touched a low of 38,587.51 points.

The m-cap of BSE-listed companies stood at Rs 1,52,40,024.08 crore at the end of trading on Thursday.

All Sensex components were trading in the red, led by losses in Tata Steel, Tech Mahindra, Infosys, Mahindra and Mahindra, Bajaj Finance, HCL Tech and Reliance Industries.

Traders said investor sentiments also remained fragile amid incessant foreign fund outflows. On a net basis, foreign institutional investors sold equities worth Rs 3,127.36 crore on Thursday, data available with stock exchanges showed.

Foreign investors have sold equities worth Rs 9,389 crore so far this week, provisional data on the stock exchanges showed.

On the BSE, 1,602 scrips declined, while 183 advanced and 62 remained unchanged.

In the broader market, the BSE SmallCap index fell 3.45 per cent, while BSE MidCap index declined 3.53 per cent.

Concerns of coronavirus turning into a pandemic and spreading into countries outside China have off late impacted investor sentiments both in the global and domestic markets.

Disruptions arising out of the coronavirus outbreak, to international travel and supply chains, have increased fears of recession in the United States and the Euro zone. 

With PTI and IANS inputs

 

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