Market sinks amid global cues, investors poorer by Rs 6.71L cr

PTI

New Delhi, May 19

Equity investors became poorer by over Rs 6.71 lakh crore on Thursday as domestic benchmark indices tumbled amid a global market meltdown.

SENSEX PLUNGES

1,416.30 POINTS

CLOSES AT 52,792.23

RUPEE FALLS TO 77.72 VS US $

• NSE Nifty tanked 430.90 points to finish at 15,809.40
• Wipro, HCL Tech, Infosys, TCS, Tech Mahindra, Tata Steel, IndusInd Bank among losers

The 30-share BSE benchmark Sensex tanked 1,416.30 points or 2.61 per cent to settle at 52,792.23, tracking weak global markets and persistent foreign fund outflows.

In line with the weak market trend, the market capitalisation of BSE-listed firms tumbled by Rs 6,71,051.73 crore to stand at Rs 2,49,06,394.08 crore.

"The rout in other Asian indices and European gauges triggered a massive sell-off in local equities as both Sensex and Nifty ended below their crucial psychological levels of 53k and 16k, respectively. Investors fretted over stagflation risks and Federal Reserve's more hawkish stance to rein in inflation by opting for more rate hikes, which would have a bigger impact on the economy going ahead.

"Till the time FIIs remain net sellers, the south-bound journey will be difficult to reverse," said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd.

From the Sensex firms, Wipro, HCL Technologies, Infosys, TCS, Tech Mahindra, Tata Steel, IndusInd Bank and Kotak Mahindra Bank were the major laggards. ITC, Dr Reddy's and PowerGrid were the only gainers.

Barring Shanghai, other Asian markets ended lower, with Seoul, Hong Kong and Tokyo losing up to 2.54 per cent. Equity exchanges in Europe were also trading sharply lower in the afternoon session. Stock markets in the US had ended deep in the red on Wednesday.

Meanwhile, international oil benchmark Brent crude declined 1.27 per cent to USD 107.7 per barrel. oreign institutional investors remained in selling mode, offloading shares worth a net Rs 1,254.64 crore on Wednesday, as per stock exchange data.

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