Investors' wealth erodes by Rs 2.57 trn as stock markets tumble

Indian equities opened positive but gave in to profit-booking in second half following weak global cues, says an analyst

Equity investors became poorer by Rs 2,57,785.17 crore on Wednesday as benchmark indices came under heavy sell-off tracking weak global markets.

The 30-share BSE benchmark tumbled 555.15 points or 0.93 per cent to close at 59,189.73, halting its two-day rally.

During the day, it dived 665.02 points to 59,079.86.

The market capitalisation of the BSE-listed companies tumbled Rs 2,57,785.17 crore to Rs 2,62,20,547.05 crore at close of trade.

"Indian equities opened positive but gave in to profit-booking in second half following weak global cues.

"Globally, equities tanked as risk sentiment soured amid growing worries over increase in government bond yield, rising inflation and soaring energy prices to multi-year highs," Siddhartha Khemka, head (retail research) of Motilal Oswal Financial Services, said.

IndusInd Bank was the biggest laggard among the BSE 30-share frontline companies pack, declining 3.38 per cent, followed by Tata Steel, Bajaj Auto, Sun Pharma, HCL Tech, Titan and Reliance Industries.

HDFC Bank, HDFC and Bajaj Finance were the only three gainers.

In the broader market, the BSE Midcap and Smallcap indices declined as much as 1.22 per cent.

"Weak global markets which resulted in profit booking in metals and IT stocks led domestic indices to trade in red, trimming its early gains.

"Spike in crude prices is spooking the Indian market, while inflation is affecting US bond yields," Vinod Nair, head (research) at Geojit Financial Services, said.