The Indian stock market has experienced a significant downturn, with investors losing nearly Rs.25 lakh crore in market value over the past four days. The market capitalization of BSE-listed companies dropped to Rs.4,17,05,906.74 crore ($4.82 trillion), reflecting a loss of Rs.24.69 lakh crore, including a sharp decline on Monday. The market cap fell below the $5 trillion mark, marking a substantial blow to investor wealth.
On Monday alone, the wealth of investors plunged by Rs.12.61 lakh crore, driven by a steep drop in equities. The decline can be attributed to multiple factors, including continued selling by foreign institutional investors (FIIs), who have sold over Rs.20,000 crore worth of Indian stocks this month, creating negative market sentiment. In addition, the Indian rupee hit a new low against the US dollar, further dampening investor confidence. This was exacerbated by stronger-than-expected US non-farm payroll data, which bolstered the US dollar, pushing the dollar index higher.
Oil prices also contributed to the market’s struggles, reaching their highest levels in over three months due to disruptions in Russian crude supplies caused by expanded US sanctions. This added to global uncertainties, further hurting market sentiment.
Over the past four trading sessions, the BSE Sensex has fallen by 1,869.1 points, or 2.39%, as numerous stocks suffered sharp declines. While some stocks, such as Axis Bank, Tata Consultancy Services, Hindustan Unilever, and IndusInd Bank, showed gains, many others like Zomato, Power Grid, Adani Ports, Tata Steel, and NTPC saw significant losses.
Out of the 4,248 stocks listed on the BSE, 3,562 stocks declined, while only 555 advanced. Additionally, 508 stocks reached their 52-week lows, indicating the widespread nature of the market slump.
