Wipe­out! `4 lakh crore gone in 5 min

Financial Chronicle - - DEEP - FC BUREAU

IT was may­hem on D-street on Thurs­day morn­ing fol­low­ing a mas­sive drop in do­mes­tic stocks — a stock mar­ket crash in which in­vestors lost about Rs 4 lakh crore in a cat­a­clysmic five min­utes.

Against a mar­ket value of Rs 1,38,39,750 crore for BSE listed com­pa­nies on Wed­nes­day, the com­bined mar­ket cap­i­tal­i­sa­tion of these com­pa­nies got eroded to Rs 134.38 lakh crore in the ini­tial trades, ac­cord­ing to BSE data.

Just a lit­tle over a month back, on Au­gust 30, the mar­ket val­u­a­tion of all BSE-listed com­pa­nies stood at Rs 1,59,34,696 crore.

The big loss hap­pened as the mar­ket fell by 1,030.40 points to slip be­low the key 34,000-mark in early trade.

Over­all, as the Sensex re­cov­ered and set­tled about 750 points be­low Wed­nes­day’s close, in­vestor wealth worth Rs 2.63 lakh crore was eroded from BSE-listed com­pa­nies.

He­mang Jani, head-ad­vi­sory, Sharekhan by BNP Paribas, said, “Mir­ror­ing global peers, the do­mes­tic stock mar­ket took a beat­ing on Thurs­day with the Nifty 50 In­dex plung­ing more than 200 points on con­cerns re­gard­ing the ongoing trade wars be­tween the US and China, ris­ing oil prices and IMF rais­ing doubts on the sta­bil­ity of the global fi­nan­cial sys­tem have kept in­vestors on the edge. We con­tinue to main­tain a cau­tious view on the mar­ket and we feel that NBFC stocks may con­tinue to be un­der pres­sure post the IL&FS cri­sis which has caused liq­uid­ity prob­lems in the sys­tem.”

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