Indian investors lose nearly ₹5L crore in stock market crash
What's the story
The Indian stock market witnessed a major downturn today, with the Sensex crashing by over 900 points and the Nifty falling by nearly 300 points. The decline has ended a two-day winning streak for both benchmark indices. The fall isn't limited to large-cap stocks alone; even midcap and smallcap indices have witnessed a dip. The market slump has cost investors nearly ₹5 lakh crore.
Investor impact
The total market capitalization has fallen
The total market capitalization of all BSE Sensex companies fell from ₹4,72,62,167 crore (Friday's close) to ₹4,67,78,282 crore (3:05pm today). This sharp selloff can be attributed to a number of factors, including weakness in heavyweight private banks and continued foreign investor outflows.
Market influencers
Private banks and crude oil prices weigh on indices
Private sector banks have emerged as a major drag on the benchmark indices after their September-quarter earnings.
HDFC Bank, ICICI Bank, and Axis Bank were among the biggest drags on the Sensex. Together, they contributed to more than half of the index's fall.
Meanwhile, crude oil prices continue to be a major concern for investors, with Brent crude trading at around $108-$109 per barrel during today's session.
Investor sentiment
Foreign portfolio investor selling adds to pressure
Foreign portfolio investor (FPI) selling has also been a major source of pressure on Indian equities.
FPIs had pulled out some ₹52,100 crore from Indian equities in October (till the latest available data today). This marks one of the heaviest monthly outflows this year.
The latest decline shows that despite last week's recovery in Indian equities, investors are still wary.