Investors poorer by over Rs 2.6 lakh crore on Tuesday’s stocks’ sell-off

The snap-in five-day winning runs for domestic equity indices shaved over 2.6 lakh crore of investors’ wealth on Tuesday.

In a volatile trading session, the 30-share BSE Sensex tanked over 700 points, while the broader NSE Nifty moved more than 200 points lower, with the focus shifting towards the upcoming US Federal Reserve meeting.

The US central bank is expected to raise rates for the first time since the COVID-19 pandemic at its meeting, which concludes on Wednesday.

Traders also turned cautious as the retail inflation in February rose to 6.07 per cent, above the Reserve Bank’s upper end of 2-6 per cent target band for a second straight month.

The sell-off in the Indian share market made investors poorer by 2.61 lakh crore on Tuesday. In line with the weak trend in equities, the market capitalisation of BSE-listed firms tumbled by Rs 2,61,145.72 crore to Rs 2,51,66,630.06 crore on Tuesday.

“Domestic indices erased its early gains amid weakness in global markets. Also, the increase in retail inflation to 6.07 per cent in February impacted sentiments,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, told PTI.

“Global markets witnessed weakness as a slew of events like the fourth round of sanctions against Russia, concerns about fresh cases of coronavirus in China and an expected US Fed interest rate hike weighed on investor sentiments,” he added.

That fall in equities comes despite oil prices sinking nearly 6 per cent to a touch above $100, down for a second straight session.