Investors poorer by over Rs 5.10 lakh crore as markets go into tailspin in early trade
Investors became poorer by over Rs 5.10 lakh crore in morning trade on Friday as markets faced severe drubbing, mirroring weak trends in global equities.
The 30-share BSE benchmark dived 1,087.62 points or 1.95 per cent to 54,614.61 in early trade.
Tracking an extremely weak trend in equities, the market capitalisation of BSE-listed firms tumbled Rs 5,10,150.97 crore to Rs 2,54,54,738.40 crore in initial deals.
Weak global markets and unabated foreign fund outflows played spoilsport for equities.
Stock exchanges in the US fell sharply in the overnight trade on Thursday.
Elsewhere in Asia, markets in Hong Kong, Shanghai and Korea were trading significantly lower, while Tokyo quoted marginally higher.
Foreign institutional investors offloaded shares worth Rs 2,074.74 crore on Thursday, according to stock exchange data.
Bajaj Finance, Wipro, Axis Bank, Bajaj Finserv, Infosys and HCL Technologies were the biggest laggards among the Sensex pack.
"The single important factor roiling global equity markets is the reemergence of inflation as a major threat and market's scepticism over the central banks' ability to contain inflation without triggering a sharp economic slowdown.
"Nasdaq is at one-year lows and S&P 500 appears to be moving in that direction. India cannot remain uncoupled from this trend particularly when FPIs are on a selling spree and have more firepower to remain bearish," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.