Market mayhem: investors’ wealth plunges ₹7.59 lakh crore on October 23

Sensex plunged 825.74 points or 1.26% to settle at 64,571.88 points on October 23, 2023. File
| Photo Credit: Reuters

Investors’ wealth eroded by ₹7.59 lakh crore on Monday (October 23) as the equity market took a heavy drubbing amid escalating tensions in the Middle East.

The 30-share BSE Sensex plunged 825.74 points or 1.26% to settle at 64,571.88 points. During the day, the index plummeted 894.94 points or 1.36% to 64,502.68 points.

This is the fourth consecutive session of decline for the benchmark index and in four days, the BSE benchmark has dropped by 1,856.21 points or 2.79%.

Amid weak trend in equities, the market capitalisation of BSE-listed firms fell by ₹12,51,700.73 crore in four days of market crash to reach ₹3,11,30,724.40 crore.

On Monday alone, the market valuation of the BSE-listed companies plummeted ₹7,59,041.63 crore.

“Benchmark indices witnessed severe pounding in the last hour trades as simmering geopolitical tension in the Middle East region triggered a wave of selling pressure and prompted investors to offload equity holdings.

“Investors are already worried about further interest rate hike and inflation, and with the addition of the Israel-Hamas conflict, the uncertainty has increased further and leading to weak sentiment in global equities,” Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities Ltd, said.

Among the Sensex firms, JSW Steel, Tata Steel, Tata Consultancy Services, Tata Motors, Wipro, IndusInd Bank, HCL Technologies, NTPC, State Bank of India and Larsen & Toubro were the major laggards.

Bajaj Finance and Mahindra & Mahindra were the gainers.

Global oil benchmark Brent crude climbed 0.04% to $92.18 a barrel.

In the broader market, the BSE smallcap gauge cracked 4.18% and midcap index dropped 2.51%.

“Fear of regional conflict in the Middle East and worries over more rate hikes by the U.S. Federal Reserve for an extended period were the major cause of concern in the market. Even the earning season has been mixed so far, thus not providing resilience to the market,” Siddhartha Khemka, Head – Retail Research at Motilal Oswal Financial Services Ltd, said.

All the indices ended lower, with telecommunication plunging 3.82%, industrials falling 3.26%, utilities (3.10%), commodities (3.06%), services (2.99%), realty (2.84%), power (2.69%), consumer discretionary (2.25%), IT (2.14%) and oil & gas (1.88%).

A total of 3,196 firms declined while 638 advanced and 156 remained unchanged on the BSE.