Investors lose ` 2 lakh crore as Sensex sinks

Investors lose ` 2 lakh crore as Sensex sinks

The Sensex plunged a steep 587 points to close at over one- year low on Tuesday due to a heavy sell- off in global markets, weak GDP and the Nikkei India Manufacturing PMI— a composite monthly indicator of manufacturing performance— at 52.3 in August.

The sharp sell- off in the stock market wiped out more than ` 2 lakh crore from investors’ wealth. Total investor wealth of BSE- listed companies tumbled by ` 2,02,654.47 crore to ` 96,25,276 crore.

The 30- share index plunged 586.65 points, or 2.23 per cent, to settle at 25,696.44. Intraday, the blue- chip index crashed 703.21 points to 25,579.88.

The NSE Nifty ended below the key 7,800- mark tumbling 185.45 points, or 2.33 per cent, at 7,785.85. Sentiment stayed decidedly muted after International Monetary Fund managing director Christine Lagarde predicted a moderate global growth.

The growth data, which came in after market hours on Monday, showed the economy grew at 7 per cent in April- June as against 7.5 per cent in the preceding quarter. Not just that, Nikkei India Manufacturing PMI stood at 52.3 in August as against 52.7 in July, a sign that the sector grew at a slower pace. Things were no better in China with two manufacturing PMIs, including a government one, reinforcing fears that the Chinese economy is cooling more sharply than expected.

"Markets shut the day with severe cuts on the back of weak global and domestic macro data. Chinas weak PMI and India’s lower GDP growth dampened sentiment. Sell- off was mainly triggered by banks, especially PSU ones, on concerns of pressure on margins,"said Gaurav Jain, director, Hem Securities.

Jayant Manglik, president ( retail distribution), Religare Securities said, "Tracking weak cues from both domestic and global front, equity benchmarks tanked today.

Mainly, sentiments were downbeat in reaction to weak macro- economic data of GDP. Adding to that, negativity on global front pushed benchmarks lower as the day progressed.”

 Happy Investing

Source:Yahoofinance.com