Investors wealth tumbles over ₹5.10 lakh crore in early trade

Investors became poorer by over ₹5.10 lakh crore in morning trade on May 6 as markets faced severe drubbing, mirroring weak trends in global equities. The 30-share BSE benchmark dived 1,087.62 points or 1.95% to 54,614.61 in early trade.

Tracking an extremely weak trend in equities, the market capitalisation of BSE-listed firms tumbled ₹5,10,150.97 crore to ₹2,54,54,738.40 crore in initial deals. Weak global markets and unabated foreign fund outflows played spoilsport for equities.

Stock exchanges in the U. S. fell sharply in the overnight trade on May 5. Elsewhere in Asia, markets in Hong Kong, Shanghai and Korea were trading significantly lower, while Tokyo quoted marginally higher.

Foreign institutional investors offloaded shares worth ₹2,074.74 crore on Thursday, according to stock exchange data. Bajaj Finance, Wipro, Axis Bank, Bajaj Finserv, Infosys and HCL Technologies were the biggest laggards among the Sensex pack.

“The single important factor roiling global equity markets is the reemergence of inflation as a major threat and market’s scepticism over the Central bank’s ability to contain inflation without triggering a sharp economic slowdown. Nasdaq is at one-year lows and S&P 500 appears to be moving in that direction. India cannot remain uncoupled from this trend particularly when FPIs are on a selling spree and have more firepower to remain bearish,” said V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.