InvestorQ : How much of market value was lost in the recent 4 day correction in the stock markets?
Arusha Ray made post

How much of market value was lost in the recent 4 day correction in the stock markets?

Answer
image
diksha shah answered.
3 months ago
Follow

Indian equity market investors have seen a massive wealth depletion of around Rs13.3 trillion in the last 4 days since the Fed announced its policy rate hike of 75 basis points late on Wednesday. In the last 4 sessions, the Sensex fell over 2,575 points while the Nifty has also fallen over 800 points in the process. The trigger came from the Fed rate hike of 75 basis points as most traders feared that a full-fledged recession could be round the corner. This has led to most of the FPIs turning out to be net sellers in last few days.

To be fair, some element of short covering is not ruled out, but the consensus view is to sell on every rise. Remember that this Rs13.3 trillion value depletion is in rupee terms and it could be much more if you add the impact of the rupee weakening from 79.6/$ to 81.7/$ during this week. Metals and autos have taken it on the chin while defensives like pharma, IT and FMCG have managed to hold on. The RBI is poised to hike rates by 50 bps when it concludes the MPC meeting on Friday, but that could also have a sentimental impact.

5 Views