Sensex plunges, investors lose Rs 14 lakh crore

Mar13,2024


Mumbai: Wednesday was the worst day for Dalal Street investors In case of wealth erosion since Covid. The day's selloff wiped out Rs 13.9 lakh crore of investors' wealth in terms of losses on the BSE's market capitalisation, which was slightly lower than Rs 14.2 lakh crore, the biggest loss so far, a few days before Modi. Was recorded on March 23, 2020. The government imposed a lockdown to stop the spread of the Covid virus.
At the end of the session on Wednesday, the market cap of BSE was Rs 378.7 lakh crore.

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The Sensex fell 906 points or 1.2% to 72,762 on day-long selling, with heavyweights like RIL, NTPC and L&T contributing the most to the fall. Nifty fell 338 points or 1.5% and closed at 21,998. crash Had ITC not closed 4.5% higher, the situation in both the major indices would have been worse, BSE data showed.
Compared to the selling seen in blue chip stocks, small- and mid-cap stocks suffered more losses. Following market regulator SEBI's recent warnings about the creation of 'froth' in these segments of the market and direction to fund houses to tighten their risk management measures in schemes investing in small and mid-cap stocks, investors have Gave priority. Market players said, take some money off the table in these counters.
According to Vinod Nair, head of research, Geojit Financial Services, in contrast to the global rally, the unfavorable risk-reward balance of mid- and small-cap stocks in India, led by premium valuations for longs, added to Wednesday's decline in major indices. Nair said that apart from premium valuations of a large number of stocks, there were no fundamental issues seen that could impact the northward movement of most indices and the long-term growth picture of domestic midcaps.
According to another market veteran, some investors preferred to book profits at these higher levels in mid-cap and small-cap stocks ahead of SEBI's scheduled stress-testing results for schemes from these sectors of the fund industry. The markets regulator is set to announce the results of the first stress test of mid- and small-cap funds on Friday.



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