Investors' wealth drops by Rs 7.17 lakh crore in three days of market slump

New Delhi: Investors' wealth eroded by Rs 7.17 lakh crore in three days of market fall, where the BSE Sensex tumbled over 3 per cent, as escalating tensions in West Asia, particularly around the Strait of Hormuz, have heightened fears of supply disruption, driving crude prices higher.

In three days, the 30-share BSE Sensex tanked 2,609.12 points or 3.29 per cent.

On Friday, the Sensex dropped 999.79 points or 1.29 per cent to settle at 76,664.21. During the day, it plunged 1,260.13 points or 1.62 per cent to 76,403.87.

The market capitalisation of BSE-listed firms eroded by Rs 7,17,476.54 crore to Rs 4,61,49,758.18 crore (USD 4.89 trillion) in three days.

"Escalating tensions in West Asia, particularly around the Strait of Hormuz, have heightened fears of supply disruption, pushing Brent crude above USD 106 per barrel. For an oil-import-dependent economy like India, this translates into elevated inflation risks, currency pressure, and margin compression across sectors," Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

The primary drag on today's market came from the IT sector, where earnings disappointment and weak forward guidance triggered a broad-based sell-off, he added.

Brent crude, the global oil benchmark, climbed 2.17 per cent to USD 107.3 per barrel.

From the Sensex constituents, Infosys dived 7.09 per cent after its revenue growth forecast for FY27 came in lower than market expectations.

HCL Tech, Tata Consultancy Services, Tech Mahindra, Sun Pharma, Asian Paints and ICICI Bank were also among the major laggards.

Trent, State Bank of India, Bajaj Finance, Kotak Mahindra Bank and HDFC Bank were the winners.

"While a lack of progress in peace talks between Iran and the US fuelled uncertainty in global markets, including India, mixed earnings among local IT companies triggered broad-based selling in domestic markets. The sharp depreciation in the Indian rupee, along with a steep rise in FII fund outflows and renewed appreciation in crude oil prices, also dented investor sentiment," Ankur Punj, MD & Business Head at Equirus Wealth, said.

The BSE SmallCap Select index dropped 0.95 per cent, and the MidCap Select index dipped 0.91 per cent.

All sectoral indices ended lower. The BSE IT tanked 5.13 per cent, BSE Focused IT (4.65 per cent), Healthcare (1.35 per cent), Telecommunication (1.33 per cent), Realty (1.30 per cent), Services (1.17 per cent), and Consumer Discretionary (1.04 per cent).

A total of 2,905 stocks declined, while 1,326 advanced and 158 remained unchanged on the BSE.