Mumbai: The fire in global commodities (Crude) and the pandemic Coronavirus may have managed to set lakhs of crores of investor wealth to fire. In India, the damage is prominent with benchmark index Sensex and Nifty50 set for the most crippling crash in recent history.
At mid-noon, the Sensex lost 2512.70 points (down by 7.04 percent) to 33,184.90. The Nifty50 was off below the five figure mark of 10,000. Nifty50 traded down 677.10 points to 9781.30.
With this, the Sensex has hit a 29 month low. In October 2017, the Sensex struck the mark of 33,300 first time.
By mid-noon on Thursday, none of the stocks on Sensex gained. AxisBank, SBI, ITC, Hero Motocorp, Titan, Larsen & Toubro, Infy, Maruti, HDFCBank, Reliance are all trading with an over 5 percent intra-day loss. AsianPaints has the most least loss of 2.22 percent. Selling pressure on Counters of TCS, HDFCBank, Reliance were the most voluminous and inflicted big damage to the Sensex.
The overall market trend was highly bearish with only 10 stocks hitting a 52 week high as opposed to 1,064 which have sunk to a 52 week low. On the broader side, 158 stocks advanced while 2,110 showed a decline on the BSE. All indices on the Bombay Stock Exchange are reflecting a 6.5 - 8 percent intra-day loss. BSE 250 Smallcap Index with a damage of 8.11% has been the most extreme while Sensex 50 with a intra-day loss of 6.26 percent is the most least.
With the World Health Organization declaring Coronavirus as a global pandemic all global indices have taken a massive hit. Already pressured Oil prices took an additional hit with Brent crude trading at $34 per barrel levels. The pressure in the international markets has also pressurized currency markets. The Indian rupee touched a 17-month low of 74.34 per dollar in the initial trade. This, despite the dollar index falling by 0.27 percent to 96.24 against a basket of six currencies.
• Dow Jones Industrial Average: Down by 1,464.94 or 5.86% at 23,553.22
• S&P 500: Down by 140.85 or 4.89% at 2,741.38
• Hang Seng Index: Down 929.40 or 3.68% at 24,302.21
• Nikkei 225: Down by 4.4% to 18,559.63.
• S&P/ASX 200 (Australia): Down 7.4% to 5,304.60.
• Kospi (South Korea): Down 4.7% to 1,817.87.
• Shanghai Composite index: Down 1.9% to 2,912.33.
Sadly, the rout in markets on Thursday has only added to miseries for investors. One will have to wait for the trading session to end in order to ascertain the exact size of damage. A preliminary examination however suggests that market capitalisation in 51 trading sessions has crashed by Rs 23.44 lakh crores.
The market-capitalisations of BSE listed companies, the day the Sensex logged an all-time high of 42,273.87 on 20 January 2020 was Rs 160.57 lakh crores. On Wednesday, market-capitalisation of all BSE listed companies was reported at Rs 137.13 lakh crores.
The live market-capitalisation at the time of updating this story on BSE was Rs 127.45 lakh crores. Investor wealth in 52 trading sessions is down by Rs 33.12 lakh crores.
According to data up to Wednesday, Foreign institutional investors (FIIs) remained net sellers in capital markets selling shares worth Rs 3,515.38 crore on Wednesday.