Market mayhem wipes off over Rs 8 lakh crore investor wealth

Investor wealth worth over Rs 8 lakh crore was wiped off in early trade on Thursday as equity markets crashed amid global equity selloff after World Health Organization termed the coronavirus outbreak a pandemic.

Amid intensifying rout in global financial markets, the 30-share BSE index plummeted 1,864.02 points or 5.22 per cent to 33,833.38.

The carnage on Dalal Street eroded investor wealth worth Rs 8,56,689.62 crore, taking the total m-cap to Rs 1,28,56,869.10 crore on the BSE at 1030 hours.

The m-cap of BSE-listed companies stood at Rs 1,37,13,558.72 crore at the end of trading on Wednesday.

Traders said besides global rout, incessant foreign fund outflows also weighed on investor sentiments.

On a net basis, foreign institutional investors sold equities worth Rs 3,515.38 crore on Wednesday, data available with stock exchanges showed.

On the BSE, 1,789 scrips declined, while 152 advanced and 57 remained unchanged.

The equity selloff intensified after the World Health Organization (WHO), late Wednesday night, termed the the new coronavirus outbreak as a pandemic, and expressed deep concern over the "alarming levels of inaction".

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Following the announcement, US President Donald Trump suspended all travel from Europe, excluding the UK, to the US for the next 30 days to stop the spread of the virus, stoking fear of a global economic slowdown.

Brent crude oil futures plunged over 5 per cent to USD 34 per barrel, after the travel ban.