Investors have lost a whopping Rs 4.2 trillion in the stock markets in past two trading sessions after the benchmark indices fell more than 2% as the rupee hit new lows, while fears of an escalation in the US-China tariff dispute continued to haunt investors in broader Asian markets.
Total investor wealth, measured in terms of the cumulative market value of all listed stocks on BSE, fell by Rs 4.16 trillion in past two trading sessions to Rs 153.24 trillion at 03:30 PM; the exchange data shows. The market capitalization (market-cap) stood at Rs 157.40 trillion, September 7, 2018.
The total market valuation of all listed firms on BSE had hit a record high level of Rs 159.35 trillion levels on August 31, 2018.
Today, the S&P BSE Sensex was closed at 37,413, down 1.3%, falling 2.5% or 977 points from 38,390 levels on Friday.
Reliance Industries (Rs 263 billion), ITC (Rs 176 billion), HDFC Bank (Rs 153 billion), Tata Consultancy Services (Rs 144 billion) and Hindustan Unilever (Rs 108 billion) have seen their market-cap declined by more than Rs 100 billion in past two days. The combined market-cap of these five companies has declined by Rs 844 billion during the period.
The financial sector, the largest loser in absolute terms, with market-cap of banks and finance companies was declined by Rs 979 billion in past two trading days.
The rupee hit a new lifetime low of 72.70 against the US dollar in late afternoon trade after opening firm at Rs 72.30 per dollar earlier in the day.
Widening current account deficit (CAD) is another major worry for the markets. The current account gap widened to $15.8 billion in June — 2.4% of gross domestic product (GDP) — because of increase in oil payments. Investors are also spooked by fears that the CAD might widen further, amid worsening domestic fundamentals.
Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Bharat Electronics, Castrol India, Sun TV Network, Gujarat Gas and Manappuram Finance were among 23 stocks from the S&P BSE 500 index hitting 52-week lows today.