Investors wealth tumbles Rs 2.21 trn amid sell-off in opening trades – Business Standard
Investors | US Fed rate hike | global markets sell-off
Press Trust of India |
Investors' wealth eroded by more than Rs 2.21 lakh crore in early trade on Wednesday, with the market witnessing a selling-off amid prospects of aggressive rate hikes by the US Federal Reserve to tackle high inflation, and sluggish global trends.
In less than hour of the start of trading on Wednesday, the key indices — Sensex and Nifty — were deep in the red and witnessed significant volatility, reflecting jittery investor sentiments.
The market capitalisation of BSE-listed companies, which is also an indicator of wealth of investors, tumbled more than Rs 2.21 lakh crore to Rs 2,84,49,727.56 crore amid the 30-share Sensex falling 564.76 points to 60,006.32 points.
On Tuesday, when the markets had gained for the fourth straight session, the market valuation stood at Rs 2,86,71,193.94 crore.
Global markets went into a tizzy on Tuesday soon after the US inflation data for the month of August triggered concerns over the possibility of further rate hikes by the US Federal Reserve.
Both the US and the European markets closed deep in the negative territory, with America's S&P 500 and Nasdaq Composite indices plummeting more 4.32 per cent and 5.16 per cent, respectively.
The Dow Jones Industrial Average shed 3.94 per cent.
Tracking the global trends, Asian markets, including Japan, China and Hong Kong, were also trading in the red.
Contrary to expectations, the US Consumer Price Index (CPI) rose 8.3 per cent in August. It was estimated to rise 8.1 per cent on an annual basis.
The inflation in the US rising despite cooling gas prices came as a surprise and spooked investor sentiments.
The current situation has triggered fears that the Federal Reserve is more likely to go for further aggressive rate hikes to curb rising inflation, which seems to be entrenched and could add to the global economic headwinds.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Copyrights © 2022 Business Standard Private Ltd. All rights reserved.
Upgrade To Premium Services
Business Standard is happy to inform you of the launch of “Business Standard Premium Services”
As a premium subscriber you get an across device unfettered access to a range of services which include:
In Partnership with
Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.
Team Business Standard