Investor wealth slides by Rs 1 lakh cr as shares tank

Dragged down by massive selling in the stock market today, the total investor wealth -- measured by market capitalisation -- slumped by a whopping Rs 1 lakh crore as nearly two stocks out of three ended with losses.

The BSE 30-share index Sensex nosedived by 430.65 points or 2.14% to end the day at 19,691.67, marking the biggest fall since February 27, 2012, when the index had plunged nearly 478 points.

All the 30-Sensex components, ended the day down, with ITC emerging as the top loser falling by over 5%.

The NSE's Nifty lost 2.08% to close at 5,980.45.

Following the sell-off, stock market investors lost Rs 1 lakh crore with BSE ending with a market capitalisation of Rs 67,03,388.59 crore.

Market breadth was negative as 1,542 stocks closed down while just 808 scrips finished higher.

Experts attributed the sharp cut to profit-taking as the benchmark Sensex had gained nearly 9% since mid-April.

"After continuous buying interest for last four weeks, investors' seem to be sceptical of buying at higher levels. Many of the stocks had reached their all-time high levels and investors booked profits today," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Limited.

Sentiments turned for the worse after April trade deficit data came out at $17.7 billion from $10 billion in March. This also sparked off fears that a perecived relief on the Current Account Deficit (CAD) front on account of fall in prices of commodities recently, may not hold true, traders said.