Investors lose Rs 5.83 lakh crore as Sensex tumbled 2,002 points

The corona virus conflict between USA and China resulted in the slip

Mumbai May 05

The investors lost Rs 5.83 lakh crore in wealth in the first trading session of May as investors were worried over tensions between USA and China over the origin and handling of coronavirus.

The capital fell to Rs 123.58 lakh crore on Bombay Stock Exchange today as compared to Rs 129.41 lakh crore on April 30. The loss in wealth came after Sensex tumbled 2,002 points in line with a global selloff. The stock index closed at 5.94 per cent lower to finish at 31,715.

The Nifty dropped 566 points (5.74 per cent) to close at 9,293. FIIs withdrew Rs 1,373 crore from equities and DIIs sold stocks worth Rs 1,661 crore, according to National Stock Exchange data.

The top losers included ICICI Bank, Bajaj Finance, HDFC, IndusInd Bank, Axis Bank and Maruti. Out of 30 Sensex stocks, only Bharti Airtel and Sun Pharma closed higher while Reliance Industries fell over 3 per cent after the oil-to-telecom conglomerate on Thursday posted its biggest ever drop in quarterly net profit.  The company’s net profit in January-March 2020 fell 37 percent (Rs 6,546 crore), the lowest in three years.

The manufacturing activity growth in the country had declined sharply in April 2020 which also sent the indices lower.

Vinod Nair, head of Research at Geojit Financial Services said, “In sync with global markets, the Indian benchmark indices lost around 5.6 per cent with an increase in the volatility index by around 28 per cent. Globally, rising trade war tensions between US and China and domestically, dire economic news added to the negativity”.

Vinod Nair, head of Research at Geojit Financial Services, said that the extension of the lockdown and the fear that the economy and businesses will take longer to get back on track also impacted the markets.