INVESTORS LOST 7.9 LAKH CRORES IN JAN

Weak trend in the equities have made investors poorer by Rs 7.9 lakh crore since the beginning of the month as sentiment remained muted amid global growth worries and sharp dip in oil prices. The BSE 30-share Sensex has plummeted by 1,631.59 points or 6.24 per cent to 24,485.95 so far this month. The index had hit its 52-week low of 23,839.76 on January 20. Tracking the extreme weakness in the stock market, the total investor wealth of firms listed at BSE plunged by Rs 7,96,903 crore to Rs 92,40,831 crore from Rs 1,00,37,734 crore at the end of December 31. "The weakness in Chinese economy and falling crude prices have taken a toll on markets across the world, in the past couple of weeks. The resultant outflows of funds from India have impacted domestic markets also," said Dipen Shah, Senior Vice-President & Head of Private Client Group Research, Kotak Securities. Overseas investors have pulled out more than Rs 9,900 crore from the Indian equity markets since the beginning of the month due to global growth concerns and sharp dip in oil prices. Sentiment was hit mostly by renewed global sell-off on worries driven by volatility in crude oil, which slid below USD 28 per barrel, concern over the health of the Chinese economy, while domestic economy also contributed the fall with rupee slumping over 28-month low, along with muted earnings of some of the corporates. In 2015, the benchmark Sensex fell by 1,381.88 points, or 5 per cent after gaining nearly 30 per cent in 2014. However, shrugging-off weak trend in stocks, the total market valuation of firms listed on the BSE rose by Rs 2 lakh crore in 2015, mainly helped by a host of new listings at the bourses last year.

Small stocks take big hit in New Year

Small and mid-cap indices of the BSE have underperformed compared to their bigger peer so far this month, as the two indices fell up to 10 per cent, against over 6 per cent decline in the 30-stock Sensex. While the mid-cap index plunged by 8.52 per cent to 10,217.05, losses were more sharper in the small-cap index which fell by 9.62 per cent to 10,697.91. In comparison, the benchmark Sensex dropped by 6.24 per cent to 24,485.95. The index hit its one-year low level of 23,839.76 on January 20. The mid-cap index too touched historical low of 9,892.36 on January 20. Market experts said that small and mid-caps tend to suffer more during times of uncertainty. Sentiment in the domestic market was hit mostly by renewed global sell-off on worries driven by volatility in crude oil which slid below USD 28 per barrel, concern over the health of the Chinese economy, while domestic macroeconomy also contributed the fall with Rupee slumping over 28-month low, along with muted earnings of some of the corporates. On Dalal Street, it was minnows who ruled in 2015 as mid-cap and small-cap stocks beat their blue-chip peers for the second year in a row with an average return of up to 7.4 per cent. In 2015, the BSE benchmark Sensex fell by 1,381.88 points, or five per cent, after gaining nearly 30 per cent in 2014. "Currently, investors are in a wait and watch mode as going forward global triggers will shape the market direction as per the outcome of Fed and BoJ meet this week," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd. Market players say smaller stocks are generally bought by local investors, while overseas investors focus on blue-chips. The mid-cap index tracks companies with a market value that is on an average one-fifth of blue-chips or large firms. Small-cap firms are almost a tenth of that.