Stock market bloodbath wipes off ₹4.59 lakh crore of investors' wealth

It was the biggest single-day plunge for both the Sensex and NSE index Nifty in 19 months.

Updated on: Jan 17, 2024, 18:59:58 IST

By HT News Desk

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The Bombay Stock Exchange (BSE) benchmark Sensex's 1,628 point crash on Wednesday wiped out ₹4.59 lakh crore from investors' wealth, PTI reported.

It was the biggest single-day plunge for both the Sensex and NSE index Nifty in 19 months. While the Sensex tanked by 1,628 points to end the day at 71,500.76, Nifty nosedived 460.35 points or 2.09 per cent to settle at 21,571.95.
The shares at NSE witnessed the biggest single-day loss since June 13, 2022.

ALSO READ: After 1,628 point plunge at Dalal Street, what next for stock markets?

People look at a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai. (REUTERS)

The market caps of BSE-listed firms eroded by ₹4,59,327.64 crore to
₹3,70,35,933.18 crore. In two days of market fall, investors' wealth fell by ₹5,73,576.83 crore.

“Hawkish comments by the US Fed triggered a spike in yields on the US 10-year bonds and the US dollar index, which spooked European and Asian markets, including India. India's stock market valuations are also expensively valued compared to other global stock indices and investors would wait for more positive cues now to extend their equity exposure,” Prashanth Tapse, senior vice-president (research), Mehta Equities Ltd., told PTI.

"There are challenges in the near-term such as persisting conflict in the Middle East and worries over delay in the US Fed rate cut, which could dampen investors' sentiment going ahead," Tapse added.

Sensex-listed HDFC Bank saw its shares tank by over eight per cent, day after the company reported a net profit of ₹16,372 crore in its Q3 results.

"Domestic equities plunged amid a weak environment globally and a selloff in HDFC Bank. Banking sector took the biggest hit as Q3 results of HDFC Bank showed stagnant growth for the company. Hawkish Fed commentary, escalating tension in the Middle East, and a spike in bond yield dented investor sentiment," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd told PTI.

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