Financial markets are undergoing huge and massive turbulance. Over Rs 6,98,419.77 crore in two days of market fall as benchmark indices failed to hold onto early gains on Tuesday and closed lower. The BSE benchmark ended at 31,453.51, down 261.84 points or 0.83 per cent on Tuesday. Experts are considering this phase as a wealth erosion.
The BSE barometer had tanked 2,002.27 points or 5.94 per cent on Monday. Following the two-day fall in equities, the market capitalisation of BSE-listed companies plunged by Rs 6,98,419.77 crore to Rs 1,22,43,201.05 crore. "Markets traded volatile with benchmark indices closing negative. Losses were led by financials. Markets are trading uncertain regarding the impact of lockdown measures and its effect on earnings," Geojit Financial Services Head of Research Vinod Nair said.
In the broader market, the midcap and smallcap indices dropped 0.97 per cent each. "The benchmark indices ended with a cut of over half a per cent, in line with the previous day's slide. Initially, the bias was slightly on the positive side, thanks to firm global cues. However, gains fizzled out in no time as the day progressed," Ajit Mishra, VP - Research, Religare Broking Ltd said.
"We feel the muted earnings combined with looming uncertainty over the economic situation due to extended lockdown have started haunting the participants," Mishra added.
State Bank of India was the top laggard among the 30-share BSE gauge pack, falling by 4.64 per cent, followed by Bajaj Finance, Asian Paints, Axis Bank, Kotak Bank and ICICI Bank. On the other hand, M&M, PowerGrid, ONGC and Reliance Industries were among the major gainers.
In terms of sector, BSE realty, bankex, finance, healthcare, capital goods, FMCG and industrials indices fell up to 2.97 per cent.