Investors suffer Rs 16 lakh crore loss in 7 sessions as bears regain control over D-Street

Bears seem to have taken a complete control over Dalal Street with the changing mood of market participants leading to an erosion of more than Rs 16 lakh crore of investors’ wealth in the last seven sessions in a row.

The BSE Sensex has broken its psychological 60,000 mark intraday and traded down nearly 700 points at 60,137 at the time of writing this article.

The Nifty50 also dipped below the crucial 18,000 mark, trading 220 points lower at 17,907, while there was a rout in the broader markets. The BSE Midcap index fell more than 2 percent and Smallcap index corrected nearly 3 percent.

Hawkish statements by central banks indicating continuity in rate hikes, growing global recession worries, and now surging Covid cases in several countries paved the way for the bears to return.

On Friday alone, investors were left poorer by Rs 5.5 lakh crore, as the BSE market capitalisation dropped to Rs 275.01 lakh crore from Rs 280.55 crore in the previous session.

If we look at the performance through the last seven days or especially after hitting record BSE market capitalisation on December 14, we see more than Rs 16 lakh crore of wealth being drained as BSE market capitalisation declined to Rs 275.01 lakh crore on December 23 from Rs 291.25 lakh crore on December 14.

In these seven days, the benchmark indices fell around 4 percent, and the correction from their record highs stood at around 5 percent.

After looking at the performance in December so far, Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas, feels it is going to be a close battle between positives and negatives in 2023.

“At this stage of growing global macro uncertainties and re-emergence of the Covid scare, there is nearly a consensus of global growth slowdown in 2023. Multiple macroeconomic headwinds such as economic slowdown, rising inflation, liquidity tightening, geopolitical tensions and return of the Covid panic will continue to weigh on global equities markets,” he said.

All Asian markets traded under pressure on Friday, tracking negative cues from Wall Street overnight. Japan’s Nikkei fell 1 percent and South Korea’s Kospi lost 1.8 percent, while Hong Kong’s Hang Seng and China’s Shanghai Composite fell third of a percent each at the time of writing this article. On Thursday, US markets were down in the range of 1-2 percent at close.

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