Rs 14.22 lakh crore evaporates in single day
Investor wealth took a massive beating of Rs 14.22 lakh crore on Monday as markets went into a tailspin, dropping a whopping 3,934.72 points as...
New Delhi: Investor wealth took a massive beating of Rs 14.22 lakh crore on Monday as markets went into a tailspin, dropping a whopping 3,934.72 points as lockdown in several states sent jitters to investors.
Sentiment turned extremely negative after several Indian states announced lockdown following rise in the number of coronavirus cases.
As the benchmark indices posted their worst ever one-day crash, the market capitalisation of BSE-listed companies too plunged Rs 14,22,207.01 crore to Rs 1,01,86,936.28 crore.
In the first hour of trade on Monday, the benchmark indices cracked over 10 per cent, triggering a 45-minute trading freeze as coronavirus-led lockdowns across the world stoked fears of a massive global recession.
"It was another black Monday for the Indian equity market as the number of cases is rising exponentially across the world as well as in India where almost overall India is under lockdown situation.
Sebi's move to curb volatility didn't work for the market as rules were applicable for both long and short positions which makes difficult new long positions while short positions caused more price damage due to lack of liquidity," TradingBells Senior Analyst Santosh Meena said.
"We can say that almost the worst-case scenario has been discounted by the market in today's trading session but it is difficult to say about it with confidence amid a very uncertain event of coronavirus.
If any minor relief comes in front of coronavirus then we can expect a smart recovery in the market," he added.