Bear attack wipes out Rs 3.57 lakh cr from investors' wealth

New Delhi: Investors' wealth got eroded by Rs 3.57 lakh crore on Monday as markets took a heavy beating with the BSE Sensex tumbling 1,272 points amid a host of negative triggers -- weak Japanese markets, rising geopolitical risks in the Middle East and selling in heavyweight bank stocks and Reliance Industries.

The BSE benchmark Sensex tumbled 1,272.07 points or 1.49 per cent to settle at 84,299.78. During the day, it plunged 1,314.71 points or 1.53 per cent to 84,257.14.

The market capitalisation of BSE-listed firms slumped by Rs 3,57,885.53 crore to Rs 4,74,35,137.15 crore (USD 5.66 trillion).

"Profit-taking in Reliance Industries stock and banking counters coupled with a slump in Japan's Nikkei index spooked Indian markets that saw both Sensex and Nifty crash nearly 1.50 per cent each.

"The sharp rally in recent weeks was the outcome of Fed rate cut and hopes that RBI would also follow suit in its policy meeting, and if the central bank keeps the rates steady it may lead to short term weakness. Globally, if the Israel-Hezbollah war escalates further, nervousness could fuel panic selling going ahead," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

In Asian markets, Seoul and Tokyo settled with deep cuts, while Shanghai and Hong Kong ended sharply higher.

Japan's benchmark Nikkei 225 index tanked nearly 5 per cent on Monday. The Shanghai Composite index surged 8 per cent amid fresh stimulus measures announcement.

European markets were trading lower. The US markets ended on a mixed note on Friday.

"Global markets turned topsy-turvy under the threat of rising geopolitical risk in the Middle East and plausible increase in Yen interest rate which can reduce cross-country investments in equity. On the contrary, the Chinese market had a resurgence due to a large stimulus package and cheap valuation.

"India also weakened under the global pressure and premium valuation, while metals are expected to outperform in the near-term," Vinod Nair, Head of Research, Geojit Financial Services, said.

From the 30 Sensex firms, Reliance Industries and Axis Bank declined over 3 per cent each. Mahindra & Mahindra, ICICI Bank, Nestle, Tech Mahindra, Maruti, Bajaj Finserv, State Bank of India and Tata Motors were the other major laggards.

In contrast, JSW Steel, NTPC, Tata Steel, Asian Paints and Titan were the gainers.

The BSE midcap gauge declined 0.28 per cent, while smallcap index climbed 0.07 per cent.

Among the indices, auto tumbled 1.91 per cent, bankex (1.82 per cent), realty (1.80 per cent), financial services (1.40 per cent), services (1.22 per cent) and telecommunication (1.19 per cent).

Metal and commodities were the winners.

A total of 2,223 stocks declined, 1,819 advanced and 151 remained unchanged on the BSE.