Staggering Losses in Equity Markets

Equity investors have faced a significant wealth erosion of Rs 18.43 lakh crore over a five-day market downturn. The benchmark BSE Sensex dropped 4,091 points or 4.98% during this period, influenced by heavy foreign fund outflows and weak global market trends.

On Friday, the BSE Sensex closed at 78,041.59, a drop of 1,176.46 points or 1.49%. Similarly, the NSE Nifty declined 364.20 points or 1.52%, settling at 23,587.50.

The combined market capitalization of companies listed on the Bombay Stock Exchange (BSE) shrank to Rs 4,40,99,217.32 crore (USD 5.18 trillion). This selloff was widespread, affecting key sectors including realty, power, IT, and financial services.

Foreign Institutional Investors (FIIs) continued to offload equities, adding to the market's nervousness. Global market trends and the US Federal Reserve's slower pace of rate cuts also contributed to the bearish outlook.