New Delhi: Investors have suffered a wealth erosion of Rs 5.86 lakh crore in the last five sessions as sentiment remained bearish amid tepid corporate earnings and heavy foreign fund outflows.
The BSE Sensex has lost 1,367.99 points, or 3.48 percent, in five sessions. On Wednesday, it dropped 135.09 points to close at 37,847.65.
Led by the weak market sentiment, the market capitalisation (m-cap) of BSE-listed companies plunged Rs 5,86,008.88 crore to Rs 1,43,27,797.54 crore.
"Indian equity benchmark indices fell for the fifth straight session, led by unsupportive global cues and weak domestic sentiments. The focus of investors would be on Q1 FY20 earnings season, as it is likely to induce stock-specific volatility.
"Globally, investors would keenly watch for Fed meeting scheduled on 30-31 July," said Ajit Mishra, Vice President, Research, Religare Broking.
IMF's downward revision of India's economic outlook also hit investor sentiment, analysts added.
According to Vinod Nair, Head of Research, Geojit Financial Services, "Investors turned sellers on concerns that economy is moving through a slowdown phase. IMF lowered growth forecast for 2019 which fuelled a sell-off in a market where sentiment is already hurt due to tax concerns. Mixed Q1 FY20 results, the outflow of foreign funds and weakening rupee to weigh on investor sentiments going ahead."
The IMF on Tuesday projected a slower growth rate for India in 2019 and 2020, slashing its forecast by 0.3 percentage points for both years to 7 percent and 7.2 percent respectively, reflecting a weaker-than-expected outlook for domestic demand.
From the 30-share Sensex pack, 23 scrips declined in Wednesday's session, led by IndusInd Bank, Bajaj Finance, Tata Motors and Tata Steel which fell by up to 3.87 percent.
At the BSE, 1,642 companies declined while 807 advanced and 160 remained unchanged.
Over 400 companies hit their 52-week low level on the BSE on Wednesday.
Updated Date: Jul 24, 2019 19:16:28 IST