Iran war rattles markets; investors lose Rs 16.32 lakh crore
The BSE benchmark has lost 2,171 points or 2.67 per cent amid the onset of hostilities between Iran and the US-Israel since February 28
The escalating war between Iran, Israel and the US had jolted the global markets, with sharp sell-offs wiping out vast amounts of investor wealth as benchmark indices fell over successive sessions. Equity investors lost Rs 16.32 lakh crore in the two-day fall in the stock market.
The domestic index BSE Sensex plunged 1,122.66 points or 1.40 per cent to settle at 79,116.19 on Wednesday (March 4). The BSE benchmark has lost 2,171 points or 2.67 per cent amid the onset of hostilities between Iran and the US-Israel since February 28.
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The market capitalisation of BSE-listed companies eroded by Rs 16,32,428.12 crore to Rs 4,47,18,243.15 crore (USD 4.85 trillion) since Friday last week.
Equity markets were closed on Tuesday for Holi.
"Markets traded with a negative bias on Wednesday, extending their recent corrective trend amid weak global cues and persistent geopolitical concerns. Investor sentiment remained fragile amid weak global signals, elevated crude oil prices and lingering uncertainty around geopolitical developments. Continued foreign institutional selling and currency volatility further dampened confidence," Ajit Mishra, SVP Research, Religare Broking, said.
Gainers and losers
From the Sensex pack, Tata Steel tanked 6.76 per cent, followed by Larsen & Toubro (4.53 per cent). Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv and Hindustan Unilever were also among the laggards.
Bharti Airtel, Infosys and Tech Mahindra were the gainers.
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The BSE smallcap select index tumbled 2.42 per cent and midcap select index dropped 2.10 per cent.
Among sectoral indices, metal plunged 4 per cent, BSE PSU Bank (3.50 per cent), industrials (3.29 per cent), realty (3.16 per cent), commodities (3.12 per cent), capital goods (2.64 per cent), power (2.59 per cent), services (2.25 per cent) and energy (2.23 per cent).
A total of 3,245 stocks declined, while 1,053 advanced and 135 remained unchanged on the BSE.
Global markets
Asian markets ended with deep cuts. South Korea's Kospi tumbled 12 per cent. Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index also ended significantly lower.
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Brent crude, the global oil benchmark, jumped 1.63 per cent to USD 82.73 per barrel.
(With agency inputs)