Mumbai: Indian equity investors’ investors’ wealth plunged by Rs 37 lakh crore in October. This is the worst in a single month. Before this, the worst-ever monthly market cap loss was in March 2020, when the panic over the Covid pandemic saw investors lose as much as Rs 33.4 lakh crore. In the first half of the financial year, the market capitalisation gained over Rs 87 lakh crore.
The BSE Sensex and the NSE Nifty have fallen 5.8% and 6.3%, respectively, this month, while the broader market indices have seen a sharper cut of up to 9%.
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At the end of Friday, the market capitalisation of BSE-listed companies stood at Rs 437 lakh crore ($5.2 trillion).The persistent selling saw the BSE Sensex close below the 80,000-point mark for the first time in over two months. The 30-stock index fell 0.8% to 79,402.29 points on Friday, and the Nifty closed 0.9% lower at 24,180.80.
Market capitalisation or ‘market cap’ is a measure used to evaluate the total value of a publicly traded company. It is calculated by multiplying the current share price of the company by the total number of outstanding shares. In essence, market capitalisation represents the theoretical value of a company.
Foreign portfolio investors (FPIs) have led the sell-off by dumping stocks worth $9.5 billion (Rs 79,363 crore) so far in October. On the other hand, domestic institutional investors (DIIs) have bought Rs 92,931 crore. Even on Friday, FPIs sold shares of Rs 3,036 crore, while DIIs were net buyers of Rs 4,159 crore.
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