Ever since the US Fed hinted at higher and higher key rate hikes, global markets are wreaking havoc as investors turn to bearish sentiment. Indian equities also bore the brunt of global cues for the week as they ended the holiday-shortened week in the red with biggest losses on Friday. Sensex and Nifty 50 erased previous gains to fall for two straight days. This led to a significant correction in the domestic benchmark as investors lost approx. 3.3 lakh crore in two days.
Listed on BSE on Friday equity market hat was almost standing 262.95 lakh crore — which is very less Rs 1.36 lakh crore from previous day’s print 264.31 lakh crores.
Sensex It closed at 59,135.13, down 671.15 points or 1.12%. While the Nifty 50 fell 172.85 points or 0.98% to close at 17,416.75 on Friday.
However, since March 9, Sensex and Nifty 50 are in the red. It is being said that the m-cap of companies listed on BSE has fallen to approx. 3.3 lakh crore — from March 8 level where m-cap was around 266.24 lakh crores.
For the current week, the Sensex fell nearly 310 points or 0.52%, while the Nifty 50 fell 54.40 points or 0.31%.
Due to heavy selling, BSE-listed equities erased gains of over 2.82 lakh crore which was recorded between 6th to 8th March. Markets were closed for business on March 7 on account of Holi festival.
On the market, Dr Joseph Thomas, Head of Research, Emkay Wealth Management, said, “The weakness displayed by equity markets during the current week was triggered by recent developments overseas, and confirms the close alignment of the local market. with major markets.
According to Thomas, the Fed chairman’s statement that the Fed would be prepared to accelerate the pace of rate hikes, if necessary, did little to enable it to more quickly control inflation and achieve the inflation target rate. The shock was for market participants who had already concluded that the Fed’s further policy would be more accommodative.
This statement, he said, took the wind out of the sails for a while.
Among other distant factors affecting subsurface markets, according to Thomas, are the recent intensification of the Russian invasion of Ukrainian territories, and also the general perception that economic growth in many regions may be slower than expected at present. Year.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.