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After hitting Rs 100-lakh crore in the last week of November, an over 750-point correction in the S&P BSE Sensex has seen a market capitalisation erosion of more than Rs 250,000 crore in past three trading sessions.
Total investor wealth, measured in terms of cumulative market value of all listed companies, plummeted by Rs 267,191 crore and stood at Rs 98,05,882 crore at the end of the day's trade on Tuesday. It was Rs 10,073,073 crore on December 4. S&P BSE Sensex declined 766 points from 28,563 to close at 27,797 today.
Of this, nearly half or Rs 1,36,371 crore got eroded just from the 30-share BSE Sensex companies that include blue chips like Tata Consultancy Services (TCS), Oil and Natural Gas Corporation (ONGC), Infosys and State Bank of India (SBI), which saw market-cap erosion of more than Rs 10,000 crore each.
60 stocks saw market capitalisation erosion by more than Rs 1,000 crore each. TCS was the biggest loser, that recorded m-cap erosion of Rs 23,348 crore in past three trading sessions. The stock fell 4.5% from Rs 2,637 to Rs 2,517 on the BSE.
ONGC has hit its lowest level since May 13, 2014, down nearly 4% to Rs 352 on the BSE, after Brent crude oil hit a new five-year low. The stock declined 5% in past three sessions, recorded Rs 15,828 crore market-cap erosion.
The stock of the country’s biggest explorer has underperformed the market by falling nearly 24.5% from its record closing high of Rs 466 on June 6, 2014 compared to about 10% rise in the benchmark S&P BSE Sensex.
Infosys, whose founders sold 32.6 million shares of the company for Rs 6,484 crore via open market on Monday, have seen m-cp erosion of Rs 15,792 crore. The stock declined 6.5% from Rs 2,102 to Rs 1,965 during past three trading sessions.
Market experts, however, suggest that investors should use the current fall in equities as an opportunity to buy from a long-term perspective.
“Technically, we are of the view that unless and until the market is not approaching to major supports buying may not emerge but it’s a normal correction and investors should use it as an opportunity to buy and traders can take contra view of buying around major supports,” said Shrikant Chouhan, Head- Technical Research, Kotak Securities.
Meanwhile, out of BSE-500 companies, the market value of 139 stocks declined more than 5% each in past three trading sessions. SpiceJet, HCL Infosystems, Vaibhav Gems, CCL International, Rattan India Power, Gitanalji Gems, Alok Industries, Shasun Pharmaceuticals and CESC declined between 10-15%.
