Equity investors become poorer by Rs 4.22 lakh cr as market benchmark indices sink over 1%

New Delhi: Investors' wealth eroded by Rs 4.22 lakh crore on Monday as the BSE Sensex fell below the key 75,000-mark, down over 1 per cent, amid a sharp fall in US markets, non-stop foreign fund outflows and worries over US tariffs.

The 30-share BSE benchmark tanked 856.65 points or 1.14 per cent to settle at 74,454.41, registering its fifth day of decline. During the day, it slumped 923.62 points or 1.22 per cent to 74,387.44.

The NSE Nifty dropped 242.55 points or 1.06 per cent to 22,553.35.

In the last five trading sessions, the BSE barometer lost 1,542.45 points or 2 per cent, and the Nifty tanked 406.15 points or 1.76 per cent.

In the last five trading sessions investors' wealth eroded by Rs 2.34 lakh crore, which is less than Monday's loss of Rs 4.22 lakh crore.

In the past five trading days, on two occasions investors' wealth rose.

The market capitalisation of BSE-listed firms eroded by Rs 4,22,983.08 crore to Rs 3,97,97,305.47 crore (USD 4.59 trillion) in a single trading session on Monday.

"The market is more concerned about the US' likely move to reciprocate higher tariff levies on exporting nations, which could impact developing countries including India.

"Also, FIIs showing no signs of putting brakes on their India exit strategy continue to weigh heavily on markets, with expensive valuations driving investors to curb their equity bets here," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

From the Sensex pack, HCL Tech, Zomato, Tata Consultancy Services, Infosys, Bharti Airtel, Tech Mahindra, Tata Steel and NTPC were among the biggest laggards.

In contrast, Mahindra & Mahindra, Kotak Mahindra Bank, Nestle, Maruti and ITC were among the gainers.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,286.70 crore on Monday, according to exchange data.

The BSE smallcap gauge declined 1.31 per cent, and the midcap index dipped 0.78 per cent.

"Benchmark indices ended sharply lower on Monday led by losses in IT. Broader mid and smallcaps also posted losses mirroring the benchmarks. Markets opened sharply lower in the morning following Friday's US sell off after data showed weak business activity and rising inflation expectations among US consumers," Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.

Among the sectoral indices, BSE Focused IT dropped 2.65 per cent, IT (2.60 per cent), teck (2.56 per cent), telecommunication (2.26 per cent), metal (2.16 per cent), commodities (1.53 per cent) and utilities (1.42 per cent).

On the other hand, auto and FMCG were the gainers.

"With no major domestic triggers, markets are primarily tracking global cues and facing renewed pressure due to weakness in US markets. Additionally, the downturn in key sectors like banking and IT, which had previously shown resilience, has worsened the sentiment," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

As many as 2,810 stocks declined, while 1,207 advanced and 183 remained unchanged on the BSE.