Sensex wiped out more than 1000 points in the last two sessions, extending its loss from its all-time high recorded in June to over 1,500 points. In the same period, the fall has cost investors more than Rs 8 lakh crore as the market cap of BSE listed companies has crashed.
The average market capitalisation of the BSE-listed companies fell from Rs 156.14 lakh crore recorded on June 3 to Rs 147.96 lakh crore on July 8.
The government proposal to increase taxes for foreign portfolio investors (FPIs) in the Budget 2019 dented sentiments. Additionally, the absence of any fiscal stimulus and proposal of 20 percent tax on share buybacks by companies resulted in a knee-jerk reaction on D-Street.
“The markets are reacting not only due to the reduced limit on promoter holdings but no visible action is stemming due to the current slowdown in the economy. Investors can look at quality stocks, however, don’t expect a V-shaped bounce back, unless there is more clarity on such issues.
Sensex witnesses 15th biggest single day fSelling pressure was across the market cap segment as 162 BSE500 stocks fell 10-50 percent since June 3. They include BPCL, Suzlon Energy, HPCL, Gujarat Gas, Rain Industries, Equitas Holdings, Biocon, Quess Corp, PC Jeweller, Reliance Infra, Reliance Capital and Jet Airways, among others.
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