On Monday, Investors lost nearly ₹8.5 lakh crore in the worst stock market crash in 10 months. The Sensex crashed at 1,747 points and closed at 56,405.
Furthermore, the Ukraine crisis triggered a global sell-off, and Sensex witnessed the worst single-day fall in ten months.
The worst stock market crash in ten months
According to data, the investor wealth, measured by the combined market capitalization of BSE-listed companies, dropped to ₹255.42 lakh crore from ₹263.90 lakh crore.
However, Telecom, Banking, Metal and Capital Goods indices surged over 5%. Moreover, the BSE Realty index soared over 7% in two previous trading sessions.
Last week on Thursday, investors lost ₹12.43 lakh crore in wealth. Furthermore, the combined market cap of BSE fell to ₹255.38 lakh crore from ₹267.81 lakh crore.
Hem Securities, head-PMS, Mohit Nigam, said, “There is a short-term negative sentiment in the markets due to Ukraine-Russia crisis tensions, rising crude oil prices and US Fed’s aggressive rate hike expectations due to decade-high inflation. But we believe the current fall in the market is due to Ukraine crisis, and we may witness a strong rebound in markets after easing of Ukraine crisis.”
What do market experts say about the worse market crash in ten months?
Geojit Financial Services Chief Investment Strategist, VK Vijayakumar, said, “Long-term investors who can ignore the present short-term gyrations can buy high-quality financials and IT stocks now.”
Joint MD, Prabhudas Lilladher, Amisha Vora, shares her investment strategy, “Investment strategy will have to b a bit defensive by bringing value strategy in the portfolio for only growth and momentum stocks. For portfolio sectoral allocation, investors can focus on private and select public sector banks where the balance sheet is totally clean. On can also zero in on capital goods sector which is aided by China plus on and PLI scheme, residential real estate, housing improvement companies and infrastructure companies.”
Stocks that fell on Monday
In the previous two sessions, all 50 stocks listed on the Nifty index witnessed a crash in their share prices.
HDFC took a severe fall of 8.04 percent, followed by Housing Development Finance Corporation down at 7.50 percent.
Share Cement, Kotak Mahindra Bank, UPL, Adani Ports, Ultratech Cement, Bajaj Finance, Maruti Suzuki, and Tata Steel fell over 5%.
Furthermore, Tata Motors was down at 7.18%, and State Bank of India fell at 7.46%.
As the Ukraine-Russia crisis rose, the global stock market took a sharp hit. Rising crude oil prices and the Fed’s increasing tax rates have contributed to the market crash in ten months.