Market fall wipes out Rs 2.72 trillion of investor wealth in two days

Increasing crude oil prices, a sliding currency and mounting trade tension are the reasons

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Stock investors became poorer by Rs 2.72 trillion in two days of market fall which saw the BSE benchmark index diving almost 800 points.

Market benchmark BSE Sensex Tuesday tumbled by about 295 points or 0.78 per cent to close at 37,290.67 due to increasing crude oil prices and mounting trade tension.

It had lost 505.13 points or 1.33 per cent on Monday as rupee woes and trade war worries spooked investors.

Led by the sharp fall in stocks, the market capitalisation (m-cap) of BSE-listed companies plunged Rs 2.72 trillion to Rs 1.53 trillion since Friday.

"Selling pressure increased on the bourses due to spike in oil prices," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.

Flaring up of trade tariff tensions between the US and China and weakness in the rupee have also added to weak investor sentiment.

From the 30-share basket, 24 stocks ended with losses led by SBI, Tata Motors, Bajaj Auto and Axis Bank.

At the BSE, 1,805 stocks declined, while 881 advanced and 162 remained unchanged Tuesday.

As many as 140 stocks hit their respective 52-week low levels.