Market: Sensex, Nifty falls 8%, Investors loses Rs 16 lakh crore

The BSE Sensex had a market cap of Rs 2,74,69,606.93 crore when the markets closed on October 19. On Friday, the figure had declined to about Rs 2,58,30,168.59 crore.

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New Delhi: Wealth creation in the stock market seems to be on a pause mode and the trend over the past month has been towards a market correction.

The BSE Sensex hit a new peak of 62,245 points on October 19, when the National Stock Exchange (NSE) benchmark Nifty also created a new record of 18,604. Since then, the indices have declined 8%, eroding almost Rs 16 lakh crore in investors’ wealth.

On Friday alone, the markets fell close to 3%, which Hemang Jani, head of equity strategy and senior group vice president of broking and distribution at Motilal Oswal Financial Services, linked to the “emergence of a new, highly mutated Covid-19 variant.”

Realty, metals, banks and automobiles declined the most; gains in the pharma sector provided a bit of reprieve.

The BSE Sensex had a market cap of Rs 2,74,69,606.93 crore when the markets closed on October 19. On Friday, the figure had declined to about Rs 2,58,30,168.59 crore.

The Sensex closed 1,688 points down and Nifty lost 510 points on Friday.

The fall from the all-time highs hasn’t spared any indices. The biggest drop has been in the BSE Metals index, which has fallen by 13.6 percent.

The BSE Energy index has plunged by about 10 percent. The BSE Bankex has tripped 8.2 percent, BSE Finance 7.37 percent, BSE FMCG 7.04 percent, BSE IT 6.68 percent, BSE Oil & Gas 6.1 percent, BSE Auto 6.01 percent an d BSE Realty 5.74 percent.

BSE Midcap and Smallcap are down 5.65 percent and 4.6 percent, respectively, during the same period.

INPUT: Moneycontrol

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