D-St: Investors Lose Rs 9 Lakh Cr in 4 Days; What’s Driving Market Slump?

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D-St: Investors Lose Rs 9 Lakh Cr in 4 Days; What’s Driving Market Slump?
Credit: © Reuters.

By Malvika Gurung

Investing.com -- With sell-offs continuing in the domestic market for the fourth consecutive session on Friday, the Indian benchmark equity indices Nifty50 and BSE Sensex slumped 1% and 0.92%, respectively at 2:16 pm, after opening the session 0.7% and 0.8% lower. India VIX surged 7.8%.

The domestic market is trading lower amid volatility, mirroring the overnight selloff on Wall Street for the fifth straight session on Wednesday, and the Asian stocks trading lower. Investors have responded bleakly to the unimpressive quarter earnings for India Inc in Q3.

Besides, the surging US Treasury yields to a two-year high, and fears looming around the Fed’s tightening monetary policy, along with four interest rate hikes to curb rising inflationary pressures, are leading the investors to reshuffle their portfolios and exit risk-averse assets like technology stocks, from emerging markets like India.

Besides, geopolitical tensions, a tightening stance by RBI on domestic financial conditions, and a selling spree of foreign portfolio investors due to heightened volatility are major headwinds for the market in the short run.

As a result, in the past four sessions, stock investors have lost nearly 9 lakh crore wealth in the domestic market, while FPIs have sold equities worth Rs 4,197 crore, by far in January 2022, shows data.

Since October 2021, FPIs have sold equities worth over Rs 1 lakh crore.

At 2:36 pm on Friday, Nifty Media was leading the slump, down 3.13%, while sectoral indices Nifty IT and Nifty Bank were 1.59% and 1% lower. On the 30-scrip Sensex, 25 stocks were trading in red.

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  • Peekay Sahoo @Peekay Sahoo
    There is no place of HOPE in stock market. Follow the Trend...
    Like 0
  • Nikunj Vora @Nikunj Vora
    HI
    Like 0
  • Jai Hind @Jai Hind
    Turn it around, modi.
    Like 1
  • ravindra walunj @ravindra walunj
    today's last down side hope Monday will come to upper
    Like 0
  • Vikram Wagh @Vikram Wagh
    Imagine once this is done… when FPIs do come back.. what happens… Dhoooooom!!
    Like 1
    • Jai Hind @Jai Hind
      Whats an FPI?
      Like 0
    • arul murugan @arul murugan
      @Jai Hind foreighn portfolio investors
      Like 0

      • Comment Guidelines

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