Published on 20/09/2019 11:29:59 AM | Source: Dion Global Solutions Ltd

Investor wealth erodes by Rs 1.65 lakh cr as equities face heavy sell-off

Posted in Economy News| #Economy #BSE #US Federal Reserve (FED)

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Investor wealth dropped by Rs 1.65 lakh crore on Thursday as equities witnessed a heavy sell-off, with the BSE benchmark plunging 470 points. The 30-share index ended 470.41 points, or 1.29 per cent, lower at 36,093.47. Led by the weak trend in the broader market, the market capitalisation of BSE-listed companies plunged Rs 1,65,437.91 crore to Rs 1,38,54,439.41 crore.

"Continuous selling by FIIs and uncertainty over future trajectory of Fed rate cut dampened investors sentiment. Slowdown in direct tax collection and rise in oil prices will limit government's space for stimulus measures which will continue to act as a downside risk to the market," Vinod Nair, head of research, Geojit Financial Services Ltd said. Hawkish commentary from the US Federal Reserve and incessant foreign fund outflows further weighed on sentiment, traders said.

"Lower tax collection figures spooked markets today as FII continued selling in key pivotals, dragging down indices. Exposure of many private sector banks towards commercial real estate further accentuated selling towards afternoon trade across these counters," S Ranganathan, head of research, LKP Securities said.

From the 30-share pack, 26 companies closed the day with losses, led by Yes Bank which tumbled 15.52 per cent. At the BSE, 1,828 scrips declined, while 686 advanced and 114 remained unchanged. As many as 116 stocks dropped to their one-year low level on Thursday.