The investor wealth declined by nearly Rs 2 lakh crore on Wednesday following heavy losses in the stock market. The market capitalisation of BSE-listed companies dropped by Rs 1,84,483.79 crore to Rs 1,46,88,763.39 crore, owing to heavy sell offs in the equity market as investors booked profits after a record rise in the last two sessions. The 30-share BSE gauge ended 503.62 points, or 1.29 per cent, lower at 38,593.52, while the broader NSE Nifty fell 148 points, or 1.28 per cent, to 11,440.20. The equity markets globally took a punch over geopolitical uncertainties and economic growth concerns as well, the experts said.
“Nifty corrected sharply in last session. market breadth was on the negative side. We had indicated of near term consolidation for the Nifty and we were bang on. After the near vertical sharp rise seen in only two sessions markets are digesting and rebalancing itself in the short term. 11,400 is the near term support on the downside. Overall the undertone broadly continues to remain positive and dips should be utilized to build long positions,” Manav Chopra, CMT, Head Research – Equity, Indiabulls Ventures said.
“We remain cautious on the markets as it is hovering around its peak levels and some consolidation can be expected in the near term. From medium to long-term perspective, outcome of RBI monetary policy and revival in corporate earnings will be crucial. Thus under uncertain market conditions, traders & investors should be selective in stock picking,” Ajit Mishra Vice President, Research, Religare Broking said. Meanwhile, the rupee depreciated 9 paise to 71.10 against the US dollar. Brent crude futures fell 1.65 per cent to $62.06 per barrel.