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Market rout wipes out Rs 3.62 lakh cr from investor wealth in three trading days; Sensex loses 970 points

New Delhi: As the market rout continued for the third straight session on Wednesday, investor wealth eroded by Rs 3.62 lakh crore in three trading days.

Market benchmark BSE Sensex fell further by 169.45 points to end at a near two-month low of 37,121.22, extending losses for the third straight session Wednesday. The index tanked 970 points or more than 2.5 percent since Monday, largely hit by rupee woes and escalating trade tensions between the US and China.

Led by losses in stocks, the market capitalisation of BSE listed companies eroded by Rs 3,62,357.15 crore to Rs 1,52,73,265 crore since Friday.

Market analysts said that trade war escalation issues between US and China, increasing crude oil prices and depreciating rupee against the dollar have dampened sentiments.

 Market rout wipes out Rs 3.62 lakh cr from investor wealth in three trading days; Sensex loses 970 points

Representational image. Reuters.

"Despite favourable global cues and recovery in rupee, the domestic market continued to witness selling pressure due to higher oil price and yield," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

"Market is likely to remain volatile considering higher oil price, widening CAD and upcoming RBI policy meet," said Vinod Nair, Head of Research, Geojit Financial Services.

IndusInd Bank was the top loser in the Sensex pack, sinking 3.03 percent, followed by Maruti Suzuki at 2.30 percent.

Other losers included HDFC Bank 1.58 percent, Yes Bank 1.44 percent, HDFC Ltd 1.35 percent, Adani Ports 1.22, Bharti Airtel 1.03 percent, HUL 0.97 percent, ITC Ltd 0.97 percent, SBI 0.95 percent, RIL 0.57 percent, NTPC 0.35 percent, PowerGrid 0.25 percent, Asian Paints 0.14 perent and Vedanta 0.04 percent.

In contrast, Coal India rose 2.60 percent, ONGC 1.90 percent, Tata Steel 1.31 percent, Hero Motocorp 0.99 percent, Sun Pharma 0.78 percent, ICICI Bank 0.67 percent and Bajaj Auto 0.56 percent.

Sector-wise, the BSE FMCG index emerged as the worst performer by sliding 1.09 percent, followed by finance 1.01 percent, realty 0.96 percent, consumer durables 0.80 percent, healthcare 0.59 percent, power 0.52 percent, bankex 0.51 percent and auto 0.42 percent.

On the other hand, metal rose by 1.25 percent, oil and gas 0.98 percent, PSU 0.41 percent, IT 0.15 percent and teck 0.07 percent.

In the broader markets, the BSE small-cap index tripped 0.98 percent while the mid-cap gauge dropped 0.72 percent.

Shares of asset management companies (AMC) came under selling pressure and lost up to 11.28 percent after markets regulator Sebi decided to slash the charges levied by mutual funds from investors.

HDFC AMC plunged 8.55 percent and Reliance Nippon Life Asset Management slumped 11.28 percent.

In the Asian region, Hong Kong's Hang Seng surged 1.29 percent, Shanghai Composite Index spurted 1.14 percent, while Japan's Nikkei gained 1.08 percent.

European stocks too were trading higher in late morning session. Paris CAC 40 was up 0.35 percent while Frankfurt's DAX climbed 0.22 percent. London's FTSE, however, shed 0.20 percent.

US stocks were back in the recovery mode Tuesday as investors viewed the latest escalation of the US-China trade war as less consequential than feared.

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Updated Date: Sep 19, 2018 17:55:33 IST