Investors lost over ₹4.90 lakh crore in 3-day selloff in Indian equities

on Friday, Sensex and the Nifty 50 fell over 1% with a low of 59,669.91 and 17,795.55, respectively.

However, the Sensex closed at 59,900.37, down 452.90 points or 0.75%, while the Nifty 50 closed at 17,859.45, down 132.70 points or 0.74%. In the broader market, the Midcap and Smallcap indices declined around one per cent each. In terms of sectoral indices, IT stocks declined by around 2% each on BSE and NSE. In addition, heavy losses were observed in metal and banking stocks, further adding to the crisis. About 1%. bank nifty Shed around 420 points.

Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities said, “Worries of a global economic slowdown and higher interest rates going forward triggered a frenzied selloff among investors, taking the Sensex below the psychological level of 60000. , the market is not. Comfortable with current valuations given several headwinds, and hence investors resorted to profit-booking in banking, IT and metals stocks.”

According to BSE data, the market capitalization of listed companies ended 279.75 lakh crore by the end of 6 January. In Friday’s session, investors lost 2.20 Lakh Crore worth of assets as compared to the previous day. The market cap of firms listed on BSE was over on January 5 281.95 lakh crores.

This week the market cap of companies listed on BSE was the highest on January 3. 284.65 lakh crore before taking a downturn from January 4. It is said that market capitalization has declined more in the last 3 trading sessions 4,90,293.28 crores.

Between January 4 and January 6, the Sensex lost 1,394 points and the Nifty 50 lost 373 points. Markets were in the green from January 2 to January 3, however, Sensex and Nifty 50 gave up their gains and entered the red zone due to FOMC minutes, Q3 earnings expectations and continued foreign fund outflows.

Besides, FIIs have been net sellers throughout the week. FII has pulled out from January 2 to 6 7,813.44 crore from Indian Equity. FII outflow was the highest in the current week on Friday 2,902.46 crore after sales 1,449.45 crore and 2,620.89 crores on 5th January and 6th January. From Jan 2-3, was on the outflow 840.64 cr.

Regarding investors, Vinod Nair, head of research at Geojit Financial Services, said, “Investor risk appetite took a hit after the release of minutes of the FOMC meeting, which indicated further rate hikes in 2023 to tame inflation. Here’s what to expect from the upcoming key US jobs data.” Will be encouraging which will influence the policy of the next Fed. Markets already remained sensitive to FII selling and IT stocks traded with heavy losses ahead of corporate earnings release next week as growth is expected to be muted.”

IT-giant TCS will kick start the December 2022 quarter season by announcing its financial results for the quarter on January 9. Peers such as Infosys and HCL Tech are also set to announce their third quarter numbers on January 12, followed by Wipro on January 13. The largest banker in terms of market share and the largest private banker, HDFC Bank will also announce its third quarter results on January 14. Others would go ahead and follow suit.

As on January 6, 2023, Reliance Industries (RIL) is the largest company in terms of market share, with higher valuations. 17.16 Lakh Crore followed by TCS and HDFC Bank in second and third place with market cap 11.75 lakh crore and 8.89 lakh crore respectively. Infosys and ICICI Bank are also in the list of top 5 giants by market cap 6.09 lakh crore and 6.07 lakh crore on BSE.

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