` 1.96L- cr wiped out

New Delhi, Sept. 10: Investor wealth eroded by ` 1.96 lakh crore Monday following slump in the equity market where the BSE benchmark index tanked more than 1 per cent.

The 30- share BSE Sensex closed at a threeweek low of 37,922.17, down 467.65 points or 1.22 per cent.

Following slide in stocks, the market valuation of BSE- listed firms plunged ` 1,96,130.84 crore to ` 1,55,43,657 crore on Monday.

“Markets slid as fears of escalating US- China trade war dented the confidence,” said Vinod Nair, head of research at Geojit Financial Services.

The rupee has depreciated 13 per cent so far in 2018 and touched a historic low of ` 72.67 to a dollar Monday before a rebound.

“The persistent weakness in the rupee is now starting to show its impact on all asset classes including the equities. The “sentiment risk” is now the major challenge for stock markets,” said Jagannadham Thunuguntla, senior VP and head of research, Centrum Broking.

From the Sensex basket, 26 stocks ended with losses led by Sun Pharma, M& M, Vedanta and IndusInd Bank.

Among sectoral indices, the BSE auto fell the most by 1.75 per cent, followed by metal 1.74 per cent, energy 1.67 per cent and FMCG 1.65 per cent.

At BSE, 1,691 stocks declined, 1,041 advanced, while 195 remained unchanged.

Broader markets also faced selling pressure with the BSE mid- cap index falling 1.68 per cent and small- cap declining 1.07 per cent.

Sentiment also took a blow after Moody’s said sustained weakening of the rupee is credit negative for Indian firms which generate revenue in rupees but rely on US dollar debt to fund their operations. Surging crude prices globally too had a rub- off effect on Indian stocks and rupee, analysts said.