2 weeks Ago By Anurag Kumar
New Delhi: The month of October turned out to be a disaster for investors as they lost close to half a trillion of their wealth since September's peak. The trend is continuing this month as well. The Sensex lost 984 points or 1.
3% to close at 77,691 points on Wednesday — a level not seen since June 24 this year. The Sensex is now 10% down from where it was in late September when it hit all-time-high. BSE's market capitalisation has declined by approximately Rs 48.
5 lakh crore (around $620 billion), dropping to Rs 429.5 lakh crore, according to official data. On September 27, BSE’s market cap had reached an all-time high of Rs 478 lakh crore, which equated to $5.
7 trillion at that day's rupee-dollar exchange rate. As of Wednesday, the market cap stood at $5.1 trillion.
4 Reasons Why Investors Lost Massive Wealth After September High Foreign Funds Selling: One of the main reasons behind the market's downturn has been attributed to the relentless selling by foreign funds. The sentiment behind this was the uncertainty surrounding the US elections. The investors were unsure who would emerge as the winner as the elections were supposed to be a tight race.
However, Donald Trump secured a historic win in the elections, proving exit polls wrong.Investors Still On Wait &Watch: Investors are still on wait and watch as Donald Trump's presidency is yet to commence. The market is keeping a close watch on Trump's stance on key policies and how it would impact trade globally.
Weak Corporate Results and Inflation: Weak corporate earnings and a rise in retail inflation, reaching a 14-month high, have dampened investor sentiment in the domestic market, according to market experts.FPI Outflows and DII Inflows Struggle to Halt Market Decline: Foreign portfolio investors (FPIs) have net sold stocks worth nearly Rs 1.2 lakh crore (around $14 billion) between Oct 1 and now, while domestic institutional investors (DIIs) have net invested over Rs 1.
3 lakh crore. Despite this, DIIs' investments have not been sufficient to prevent the market's decline, as noted by Axis Securities. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Markets, Business Economy and around the world.
.
