Coronavirus pandemic: Market mayhem wipes off over Rs 8 lakh cr investor wealth in early trade; foreign fund outflows add woes

Even as the market continued to plunge with the Sensex nosediving points over 2431 points and Nifty slipped below the 10,000-mark, the free fall of the market wiped off investors’ wealth to the tune of about Rs 8.5 lakh crore in the early morning trade on Thursday.

Investor wealth worth over Rs 8.5 lakh crore was wiped off on Thursday morning as equity markets crashed amid global equity selloff after World Health Organisation (WHO) termed the coronavirus outbreak a pandemic.

The carnage on Dalal Street eroded investor wealth worth Rs 8,56,689.62 crore, taking the total m-cap to Rs 1,28,56,869.10 crore on the BSE at 1030 hours, reported PTI.

Sensex nosedived 2431 points at 33,265.41 while the broader Nifty plunged 648.10 points at 9,810.30 at around 11 AM.

The m-cap of BSE-listed companies stood at Rs 1,37,13,558.72 crore at the end of trading on Wednesday.

Traders said besides global rout, incessant foreign fund outflows also weighed on investor sentiments.

On a net basis, foreign institutional investors (FIIs) sold equities worth Rs 3,515.38 crore on Wednesday, data available with stock exchanges showed.

On the BSE, 1,789 scrips declined, while 152 advanced and 57 remained unchanged.

The equity selloff intensified after the WHO, late Wednesday night, termed the new coronavirus outbreak as a pandemic, and expressed deep concern over the “alarming levels of inaction”.

Following the announcement, US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus, stoking fear of a global economic slowdown.

Meanwhile, global shares crumbled on Thursday after Trump stunned investors by announcing a temporary travel ban from Europe in an effort to curb the spread of the coronavirus, threatening more disruptions to businesses and the world economy.

U.S. S&P500 futures dived 4.7 percent, a day after the S&P 500 lost 4.89 percent, putting the index firmly in a bear market territory, defined as a 20 percent fall from a recent top.

Euro Stoxx 50 futures sank 5.8 percent to their lowest levels since mid-2016.

Australia’s benchmark dived 7.4 percent while South Korea’s Kospi fell 4.6 percent to a 4-1/2-year low.

Brent crude oil futures plunged over 5 percent to $34 per barrel, after the travel ban.

— With inputs from agencies