Investors poorer by over Rs 18 lakh cr as stocks remain under pressure for sixth day


Investors’ net worth has fallen by more than Rs 18.17 lakh crore in six days of market decline, with sentiment remaining extremely bearish amid rate hikes by global central banks, relentless outflows of foreign funds and surging in the price of crude oil.

The 30-share BSE Sensex has tanked 3,959.86 points or 7.15 percent in six days of decline. It hit its one-year low of 50,921.22 during the day on Friday.
The continued weak trend in stocks has dragged the market capitalization of BSE-listed companies during this time (June 9 – June 17) by Rs 18,17,747.13 crore to Rs 2,36,77,816.08 crore.

“Equity markets globally and domestically have witnessed a bloodbath over the past few trading sessions as central banks around the world push through aggressive rate hikes… Continued FII sales and rising COVID cases have also tarnished sentiments,” said Siddhartha Khemka, chief executive officer – Retail Research, Motilal Oswal Financial Services Ltd.

The BSE benchmark fell 135.37 points or 0.26 percent to 51,360.42 on Friday.

“The dominant theme influencing equity markets worldwide is the synchronized global monetary tightening and the ensuing fears of an economic slowdown,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Titan fell the most among the Sensex companies on Friday, at 6.06 percent, followed by Wipro, Dr Reddy’s, Asian Paints, Sun Pharma, L&T and UltraTech Cement.
On the other hand, Bajaj Finance, Bajaj Finserv, ICICI Bank, Reliance Industries, ITC and HDFC Bank were among the winners.

In the broader market, the BSE small-cap index fell 0.88 percent on Friday, while the mid-cap index fell 0.68 percent.
Of the BSE sector indices, oil and gas fell the most at 3.07 percent, followed by consumer durables (2.68 percent), energy (1.86 percent), health care (1.60 percent), consumer durables and services ( 1.59 percent). ) and utilities (1.57 percent). Finance, banking, metal and real estate ended in the green.

“The market undertone remains bearish with weak global signals dampening investor sentiment. Investors are acting cautiously after the aggressive rate hike by the US Fed. In addition, FII sales show no signs of easing, which continues to impact markets,” said Amol Athawale, Deputy Vice President – ​​Technical Research, Kotak Securities Ltd.

Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 3,257.65 crore on Thursday, according to the exchange data.

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