A 204-point fall in the Sensex and a weak rupee at 52.9 to a dollar on Tuesday took the Bombay Stock Exchange’s (BSE’s) market capitalisation below the trillion dollar mark, the first time since May 2007.
Driven by concerns over slowing growth in the Indian economy and prevailing uncertainty in the euro zone, the Sensex ended down 1.3% at 15,175 at 28-month low, as the total market cap of the BSE slipped to Rs 52,60,441 crore. This represents a loss of Rs20 lakh crore in the current calendar year from the market cap of Rs 72,94,571 crore on December 31, 2010.
The Sensex has tumbled 828 points or 5% in past five sessions.The Nifty, too, closed down 1.5% at 4,544 — its lowest closing since November 3, 2009.
“Investors will not return to the market till some positive news emerge,” said Alex Mathew, research head, Geojit BNP Paribas Financial Services.