InvestorQ : Is it true that the markets lost a total of $100 billion in just 2 trading days?
Dawn Cherian made post

Is it true that the markets lost a total of $100 billion in just 2 trading days?

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Mitali Bhutta answered.
4 weeks ago
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OK, this is notional wealth and not real wealth, but the fact is that market cap of the BSE has seen a huge depletion in the last 2 days. It has been a harrowing time for markets as investor wealth eroded by Rs.710,000 crore or nearly $100 billion in just Wednesday and Thursday. After falling by a massive 871 points on Wednesday 24 March, the Sensex slid by another 740 points on Thursday the 25 March as F&O expiry applied pressure on markets.

Market cap of the BSE dropped below Rs.200 trillion on 25 March and with the dollar strengthening, it could put further pressure on the dollar valuation of the markets. In the last few days, the selling pressure has intensified due to a plethora of factors. These factors include elevated bond yields in the US, resurgence of COVID cases in Europe and also in India as well as fears of another economic slowdown as is being hinted by falling oil prices.

Overall, the Indian markets have been taking cues from the global markets and that has been quite weak. Among sectors, telecom, power, energy, auto and realty were among the worst hit, while the overall market tended to gravitate towards the defensives.

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