Sensex, Nifty tumble over 5 pc in month, investors lose Rs 17.17 lakh crore

Benchmark equity indices Sensex and Nifty have shed more than 5 per cent over the past month, eroding investor wealth by Rs 17.17 lakh crore as surging crude oil prices, geopolitical tensions and elevated bond yields weighed on market sentiment.

The 30-share BSE Sensex has declined 4,161.87 points, or 5.40 per cent, since August 27, while the 50-share NSE Nifty has fallen 1,310.6 points, or 5.44 per cent.

Investor wealth declined by Rs 17,17,487.02 crore during the period to Rs 4,74,36,620.19 crore, equivalent to about USD 4.94 trillion.

The sell-off intensified on Monday, with the Sensex plunging 1,124.02 points, or 1.52 per cent, to close at 72,771.72, its lowest level since March 30. The Nifty dropped 360.25 points, or 1.56 per cent, to end at 22,780.25, a near six-month low.

Investors lost another Rs 7.52 lakh crore in wealth during Monday's session alone.

Market sentiment has been hit by rising crude prices, geopolitical uncertainty and higher global bond yields, while indications of further monetary tightening by the US Federal Reserve have added to concerns.

"Bear remained firmly in control as the market breached a key psychological support level, reflecting growing investor caution amid deteriorating global macro conditions," Vinod Nair, Head of Research, Geojit Investments Limited, said.

He said the US rejection of a ceasefire proposal had heightened concerns that tensions in West Asia could persist, reducing the likelihood of an immediate diplomatic resolution and raising the risk of prolonged supply disruptions and higher commodity prices.

Brent crude, the global oil benchmark, jumped nearly 4 per cent to USD 108.3 a barrel.

"Brent crude at USD 108 and the US 10-year yield at 5.2 per cent are strong headwinds that are weighing on markets," Ankur Punj, Managing Director, Equirus Wealth, said.

Punj said escalating US-Iran tensions had pushed global crude prices higher and triggered a broader sell-off in domestic equities, while overseas fund outflows and US bond yields above 5 per cent were adding to market pressure.

"With US bond yields already scaling above 5 per cent and markets seeing little respite from overseas fund outflows, the undertone is likely to remain cautious with a negative bias in the near to medium term," he said.

Rising global bond yields and a stronger US dollar were also important headwinds for emerging markets, Ponmudi R, CEO of Enrich Money, said.

Tighter global financial conditions could weigh on foreign portfolio flows and broader investor risk appetite, he added.