Investor wealth erodes Rs 3.20 lakh cr on first trade of FY21 as markets tumble
Investor wealth dropped Rs 3,20,633.05 crore on the first day of the new financial year as selling resumed in the equity market amid rising cases of COVID-19. The Sensex tanked 1,203.18 points or 4.08 per cent to close at 28,265.31 on Wednesday.
Tracking weakness in equities, the market capitalisation of the BSE-listed companies eroded by Rs 3,20,633.05 crore to reach Rs 1,10,28,123.54 crore.
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Equity indices had rallied smartly on the last day of the financial year 2019-20 on Tuesday.
"Markets witnessed a sharp decline on Wednesday as participants took note of a sudden surge in coronavirus numbers in India and weak auto sales numbers.
Besides, feeble global cues combined with continuous outflow of the foreign fund was also weighing on the sentiments," Ajit Mishra, vice-president (research), Religare Broking Ltd, said.
Investors' confidence is continuously being impacted due to mounting fear of global recession, rising cases of COVID-19 and weak macros leading to selling in the global markets including India, he added.
Tech Mahindra was the biggest drag in the Sensex pack, dropping more than 9 per cent, followed by Kotak Bank, Tata Consultancy Services, Infosys and Axis Bank.
Hero MotoCorp, Bajaj Auto, Bajaj Finance and Titan were the only four gainers from the 30-share pack.
In the broader market, the BSE Midcap and Smallcap indices fell by 2.18 per cent and 1.06 per cent, respectively.
All the indices closed the day lower, led by IT, Telecom, Teck and Bank.