Wipeout: How the Recent Market Crash Cost Investors Rs 6.80 Lakh Crore

New Delhi: Investors' wealth eroded by a whopping Rs 6.80 lakh crore on Friday as equity markets tumbled, driven by a sharp fall in IndusInd Bank shares and unabated foreign fund outflows.

BSE Sensex tanked 662.87 points or 0.83 per cent to settle at 79,402.29. During day, it slumped 927.18 points or 1.15 per cent to 79,137.98.

Tracking weak trend in equities, market capitalisation of BSE-listed firms tumbled Rs 6,80,383.26 crore to Rs 4,36,98,921.66 crore (USD 5.20 trillion).

" Indian equity market is experiencing a sharp correction due to multiple factors. primary driver is foreign institutional selling, driven by valuation concerns and increased attractiveness of Chinese market.

"Ar major factor is disappointing earnings reports from Indian companies, especially in consumption sector, which signal an ecomic slowdown, particularly in urban consumption," Santosh Meena, He of Research at Swastika Investmart, said.

From 30 Sensex pack, IndusInd Bank plunged 18.56 per cent after firm reported a 40 per cent decline in September quarter net profit at Rs 1,331 crore, pulled down by concerns over its asset quality.

Mahindra & Mahindra, Larsen & Toubro, NTPC, ani Ports, Tata Steel, Maruti, Bajaj Finance and Titan were also among laggards.

From blue-chip pack, ITC climbed over 2 per cent after diversified entity reported a 1.8 per cent increase in its consolidated net profit to Rs 5,054.43 crore in second quarter ended September 2024.

Axis Bank, Hindustan Unilever, Sun Pharma and ICICI Bank were or big gainers.

"Markets continued its downward trajectory as broer selloff pulled down key benchmarks with Sensex ending below crucial 80k mark. dismal Q2 earnings so far has aggravated investors’ woes while persistent FII selling continued to create havoc in market," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Foreign Institutional Investors (FIIs) offloed equities worth Rs 5,062.45 crore on Thursday, according to exchange data, while Domestic Institutional Investors (DIIs) bought Rs 3,620.47 crore shares.

In Asian markets, Seoul, Shanghai and Hong Kong settled higher, while Tokyo ended lower.

European equity markets were tring in positive territory. US markets ended mostly higher on Thursday.

In an uninspiring tre, BSE benchmark dipped 16.82 points or 0.02 per cent to settle at 80,065.16 on Thursday. Nifty skidded 36.10 points or 0.15 per cent to 24,399.40 in a volatile tre.