Investors Lose Wealth Worth Rs 5.64 Lakh Crore As Markets Settle In Red

A sharp sell-off in Indian equities on Tuesday wiped out investor wealth worth Rs 5.64 lakh crore, as key indices closed significantly lower amid global uncertainties and profit-booking. The BSE Sensex slipped 872.98 points, or 1.06 per cent, to end the day at 81,186.44, after having plunged as much as 905.72 points intraday. The broader sentiment was dented by weakness in heavyweight stocks including HDFC Bank, Reliance Industries, and ICICI Bank.

The total market capitalisation of companies listed on the BSE fell to Rs 4,38,03,259.51 crore ($5.13 trillion), marking a steep erosion of Rs 5,64,594.68 crore in a single trading session. The Nifty 50 also ended the day deep in the red, mirroring global market jitters and cautious investor behaviour.

Global Cues, FII Sell-Off Weigh on Sentiment

The broader market weakness was fuelled by multiple factors, including the recent downgrade of the US credit rating by Moody’s, which stoked concerns over global financial stability. "All major sectors also closed in red with losses," noted Satish Chandra Aluri, Analyst at Lemonn Markets Desk, reported PTI.

He attributed the decline to a lack of fresh domestic cues and continued global uncertainty. “The lack of fresh domestic triggers and lingering global uncertainty — especially concerning US fiscal stability — has kept sentiment subdued,” he added.

Foreign institutional investors (FIIs) were seen offloading shares, adding to the pressure. The BSE midcap index dropped 1.65 per cent, while the smallcap index declined 0.96 per cent. Sectorally, auto stocks were the worst hit, falling 2.13 per cent, followed by consumer discretionary (1.81 per cent), utilities (1.64 per cent), services (1.53 per cent), industrials (1.36 per cent), and telecommunication (1.35 per cent).

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Market Breadth Weak; Traders Await Clarity on Global Trade

Among individual stocks, Eternal was the top loser, dropping 4.10 per cent. Other laggards included Maruti, Mahindra & Mahindra, UltraTech Cement, Power Grid, Nestle, Bajaj Finance, Hindustan Unilever, and Asian Paints. HDFC Bank and Reliance Industries declined by 1.26 per cent and 1.13 per cent, respectively. Meanwhile, a few stocks such as Tata Steel, Infosys, and ITC managed to end in the green.

Market breadth on the BSE was negative, with 2,531 stocks declining, 1,438 advancing, and 135 remaining unchanged. Analysts noted that investors are currently adopting a cautious stance due to elevated valuations and ambiguity surrounding the India-US trade agreement.

"Given the current premium valuations and delays in the trade deal, we foresee a phase of short-term consolidation, which may lead FIIs to scale back their positions in the domestic market," said Vinod Nair, Head of Research, Geojit Financial Services.

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