Stock market investors have taken a hit of around Rs 4.4 lakh crore this fiscal due to tumbling stock prices amid global growth worries and muted earnings of domestic firms.
As of November 11, the benchmark BSE Sensex has fallen by 2,090.54 points or 7.47 per cent to 25,866.95 this fiscal. During the period, the gauge had touched a one-year low of 24,833.54 on September 8.
Led by the sharp decline in stock market, total investor wealth, measured in terms of cumulative market value of all listed stocks, tanked by Rs 4,45,395 crore to Rs 97,03,605 crore.
Total market capitalisation of BSE listed firms stood at Rs 101.49 lakh crore on March 31.
Markets have been highly volatile in the past couple of quarters on weak corporate earnings and negative global cues, including devaluation of the Chinese currency and economic slowdown.
The recent announcement by the US Fed Chair Janet Yellen that a December rate hike is very much on the table as the economy has performed well, has also hit the market mood in the country.
Sensex crashed by 1,624.51 points on August 24 – its biggest single-day fall — wiping out over Rs 7 lakh crore from investors’ wealth on a sharp global sell-off triggered by the Chinese slowdown.
“One can really gauge the sentiments regarding the underground reality and status of the ongoing reform process from the market movements,” Equity Research Ashika Stock Broking Limited VP, Paras Bothra said.
“With uncertainties around Bihar elections and second quarter of the financial year 2016 results largely behind us, we expect Indian equities to consolidate at current levels,” ICICI Securities report said.
Going ahead, the pace of domestic reforms and global factors, especially the US Fed rate hike, could decide the course of the market, it added.