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In the bloodiest carnage on Dalal Street, the stock market benchmark Sensex today crashed by 1,624.51 points -- its biggest single-day fall -- and over Rs 7 lakh crore got wiped out within hours from the investors' wealth on a sharp global sell-off triggered by a Chinese rout. The index ended the day 5.94 per cent down at 25,741.56 points as jittery investors sold shares across all sectors including energy, banking, auto, IT, infrastructure and real estate, even as Finance Minister Arun Jaitley and RBI Governor Raghuram Rajan sought to soothe the frayed nerves saying fundamentals of Indian markets remain strong. The rupee was also not untouched by the carnage, which hit a fresh two-year low of 66.66 versus the US dollar, hitting the investors' appetite hard.
The downfall began right at the word go when markets opened this morning and the BSE's 30-share index fell by as much as 1,741.35 points in the intra-day before recouping a small portion of the losses.
In percentage terms also, the full-day loss was biggest in six and half years since a 7.25 per cent plunge on January 7, 2009. In terms of intra-day fall, today's plunge is highest in over seven years since a 2,062-point rout on January 21, 2008. Overall, this was the third-highest intra-day fall. Sentiment also took a knock after crude oil prices softened to multi-year lows amid deepening concerns about weak Chinese growth and global oversupply. The total investor wealth, measured in terms of cumulative market value of all listed stocks, tanked by more than Rs 7 lakh crore and crashed below Rs 100-lakh crore mark to end the day at Rs 95,33,105 crore.
Though notional in nature, promoters of listed companies accounted for over half of these losses at about Rs 4 lakh crore while foreign investors also took a hit of close to Rs 1.5 lakh crore. The loss in the accounts of retail investors is estimated at about Rs 75,000 crore while institutional investors also took a hit of about Rs 1 lakh crore. The broader 50-share NSE Nifty was no exception and witnessed heavy selling pressure and plunged 490.95 points to end the day at 7,809, down 5.92 per cent.
The BSE small-cap and mid-cap indices plunged even more by 8.81 and 7.68 per cent, respectively. "The two important factors which led to today's chaos are the sharp fall in the rupee due to the increase in risk to emerging market currencies and the high demand for the Offer for Sale of state-run Indian Oil requiring a total outflow of Rs 9,400 crore," said Vinod Nair, Head, Fundamental Research, Geojit BNP Paribas Financial Services.
Kotak Securities' Dipen Shah said the global risk-off trade has impacted Indian equity markets also, but added that there were some positive longer-term takeaways, including the plunge in crude prices to USD 44 per barrel.
As the stock market saw a bloodbath, the investor wealth today crashed by over Rs 7 lakh crore in the biggest ever single-day loss, as a global rout caused jitters across the board. Crashing below Rs 100 lakh crore mark, the total investor wealth measured in terms of cumulative valuation of all listed stocks, stood at Rs 95,28,536 crore at the end of the day. Though notional in nature, just top-20 companies accounted for more than 5 lakh crore of losses. Among investor classes, the promoters' share was more than 50 per cent at about Rs 4 lakh crore, while FIIs are estimated to have taken a hit of close to Rs 1.5 lakh crore on their portfolios. The loss in the accounts of retail investors is estimated at about Rs 75,000 crore, while institutional investors also took a hit of about Rs 1 lakh crore. The total investor wealth, measured in terms of collective value of all listed stocks, fell to Rs 95.29 lakh crore at the end of today's trading session -- down from Rs 102.33 lakh crore at the end of last trading session on Friday.


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