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Investor wealth eroded by Rs 7.3 lakh crore as Sensex crashes 1,000 points
Mumbai: The domestic stock market witnessed a massive sell-off on Monday, with the benchmark Sensex crashing over 1,000 points. The sell-off was triggered by a combination of factors, including weak global cues, profit-booking, and concerns over rising interest rates.
The Sensex, which opened at 59,846.27 points, fell as low as 58,477.38 points during the day's trade. It finally closed at 58,826.17 points, down 1,019.10 points, or 1.70 per cent.
The Nifty50 index also witnessed a sharp decline, falling 307.70 points, or 1.74 per cent, to close at 17,554.30 points.
The sell-off in the domestic market was in line with the weakness seen in global markets. The US markets had closed lower on Friday, with the Dow Jones Industrial Average falling over 600 points.
Analysts said that the sell-off in the domestic market was also triggered by profit-booking after the recent rally. The Sensex had gained over 4,000 points in the past month.
Concerns over rising interest rates also weighed on the market sentiment. The Reserve Bank of India (RBI) is expected to raise interest rates by at least 50 basis points in its upcoming monetary policy meeting.
The massive sell-off in the stock market led to a sharp erosion in investor wealth. As per data from the National Securities Depository Limited (NSDL), the total investor wealth in the Indian equity market fell by Rs 7.3 lakh crore to Rs 260.54 lakh crore.
The sell-off in the stock market is likely to continue in the short term. However, analysts say that the long-term prospects for the market remain positive.