Seven consecutive sessions of decline in the equity market has eroded the wealth of investors by a whopping Rs 10.42 lakh crore and the benchmark Sensex has tumbled more than 2,000 points during this period.
Concerns over more rate hikes by developed economies, weak global equity markets and fresh foreign fund outflows from the domestic market have dented investor sentiments.
On Monday, the BSE Sensex dropped 175.58 points or 0.30 per cent to end at 59,288.35 points, marking a decline for seven straight trading sessions.
The Sensex has tumbled 2,031.16 points or 3.31 per cent since February 16. During this period, the combined market capitalisation of BSE-listed firms has eroded by Rs 10,42,790.03 crore to Rs 2,57,88,195.57 crore.
Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, said weak Asian markets cues and worsening global macro economic indicators like higher inflation level, rising interest rates and volatile commodity prices are forcing investors to slash their equity exposure.
Besides, currency fluctuation coupled with concerns of slowing growth and FII outflows are also keeping the mood bearish, he noted.
“After trading in red for most part of the trading session, the bulls were seen regrouping helped by mild US dollar selling, and also as European stock markets opened higher.
“Sentiment remained weak on the back of headwinds such as expectations of higher rates and geopolitical risks,” Prashanth Tapse - Research Analyst, Senior VP (Research) at Mehta Equities Ltd, said.
On Monday, Tata Steel, Infosys, Tata Motors, Tata Consultancy Services, Mahindra & Mahindra, HCL Technologies, Larsen & Toubro, Bharti Airtel, Wipro and Bajaj Finance were the biggest laggards in the Sensex pack.
