Markets in a tailspin, investors lose more than Rs 6.4 lakh crore in a day

Markets in a tailspin, investors lose more than Rs 6.4 lakh crore in a day

Almost all markets in the Asia-Pacific region saw widespread selling on May 19 following the mayhem in the US on the previous day. Indian markets were no exception and plummeted more than 2.5 percent intraday after opening negative.

The 30-pack BSE Sensex opened with a loss of 1,138 points, or 2.1 percent, lower than the previous day’s close, while the Nifty lost 323 points, or 2 percent, at the opening bell. At close, the Sensex was down 1,416.30 points, or 2.61 percent, at 52,792.23, and the Nifty was down 431 points, or 2.65 percent, at 15,809.40.

The erosion of the Sensex’s market cap meant Indian investors were poorer by Rs 6.39 lakh crore from a day earlier.

The volatility in global markets due to various factors has shaken investor confidence, evident from the fact that that the Sensex has lost more than Rs 17.59 lakh crore of its market capitalisation in May alone.

The mcap was Rs 266.98 lakh crore at the close on April 29 and has now collapsed to Rs 249.38 lakh crore.

Also read: Taking Stock | D-Street joins global rout; Sensex, Nifty slump over 2.5% but ITC gains

Global factors at play

The selloff on May 19 was triggered by a