Investors’ fortunes plunge above 5.10 lakhcrore in early trade

Business

The market capitalization of companies listed on the BSE followed an extremely weak trend in the shares, falling from ₹5,10,150.97 crore to ₹2,54,54,738.40 crore on the first deals

The market capitalization of companies listed on the BSE followed an extremely weak trend in the shares, falling from ₹5,10,150.97 crore to ₹2,54,54,738.40 crore on the first deals

Investors were poorer by over ₹5.10 lakhcrore in morning trade on May 6 as markets faced a sharp decline, reflecting weak trends in global equities. The 30-part BSE benchmark fell 1,087.62 points, or 1.95%, to 54,614.61 in early trade.

The market capitalization of companies listed on the BSE followed an extremely weak trend in the shares, falling from ₹5,10,150.97 crore to ₹2,54,54,738.40 crore on the first deals. Weak global markets and unabated foreign capital outflows spoiled the game for equities.

Stock markets in the US fell sharply in overnight trading on May 5th. Elsewhere in Asia, markets in Hong Kong, Shanghai and Korea traded significantly lower, while Tokyo traded marginally higher.

Foreign institutional investors sold shares worth £2,074.74 billion on Thursday, according to stock market data. Bajaj Finance, Wipro, Axis Bank, Bajaj Finserv, Infosys and HCL Technologies were the biggest laggards in the Sensex pack.

“The single major factor rattling global equity markets is the re-emergence of inflation as a major threat and market skepticism about the central bank’s ability to contain inflation without triggering a sharp economic slowdown. The Nasdaq is at a low for the year and the S&P 500 appears to be headed in that direction. India cannot decouple from this trend, especially when FPIs are on a selling spree and have more firepower to stay bearish,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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