Market rout: Rs 5-lakh cr investor wealth eroded in 2 days
Investors lost a whopping Rs 5
lakh crore in just two trading sessions, with the stock-market
rout prolonging over Budget proposals to tax equities coupled
with a global sell-off.
Post Union Budget on February 1, the 30-share Sensex has
plummeted by 1,150 points in two sessions.
The BSE benchmark Sensex slumped 309.59 points, or 0.88
per cent, to end at 34,757.16 today. The index had crashed
839.91 points, or 2.34 per cent, on Friday.
Led by a continuous sell-off, the market capitalisation
of BSE-listed companies plummeted by Rs 5,04,253 crore to Rs
1,47,95,747 crore in two straight sessions.
Investor sentiments have been hit after the government
announced in the Budget a proposal to levy 10 per cent long-
term capital gains (LTCG) tax on equities and projected a
fiscal deficit of 3.5 per cent of GDP for the current fiscal.
"Selling continued in the market as concern over bond
yield and weak global market impacted the sentiment. Upcoming
RBI monetary policy will be a key trigger for the market, the
outcome of which is expected to be status quo, but any
commentary over government's fiscal policy and concern over
rising yield will add volatility...," Vinod Nair, Head of
Research, Geojit Financial Services, said.
Among sectoral indices, the BSE capital goods index
declined the most, falling 2.65 per cent, followed by bankex
1.11 per cent.
In the broader market space, the small-cap index fell
0.37 per cent and mid-cap 0.09 per cent.
On the BSE, 1,753 stocks declined, while 1,027 advanced
and 196 remained unchanged.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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