4-day selloff on Dalal Street leaves investors poorer by ₹9.85 lakh crore

Reflecting the massive sell-off across sectors, the total market valuation of BSE-listed companies stood at ₹256.39 lakh crore at the end of trading on Tuesday, leaving investors poorer by ₹9.85 lakh crore compared to ₹266.24 lakh crore on March 8.

Indian shares hit a five-month low today with benchmark BSE Sensex shedding 338 points to close below the 58,000 level, marking its fourth straight day of losses as auto, IT and financial stocks wilted.

The broader NSE Nifty declined 111 points or 0.65 per cent to end at a five-month low of 17,043.30, with 38 of its scrips ending in the red.

“Markets are dancing to the global tunes and we’ll see the reaction to the US inflation in early trade on Wednesday. Indications are in the favor of some breather after the recent slide but the upside seems capped too. Meanwhile, participants should stay light and focus more on risk management,” said Ajit Mishra, VP – Technical Research, Religare Broking Ltd.

The fallout from the collapse of US lenders Silicon Valley Bank and Signature Bank widened despite government efforts to shore up confidence, hitting bank shares globally.

Investors are now focussed on the US inflation data for cues on the rate hike trajectory amid bets of the Fed turning less hawkish amid the banking crisis.

“Investors are currently focused on the upcoming release of the US CPI later today, as it will be the final high-impact economic data published before the March 22 Federal Reserve policy meeting. Investors are anticipating that following the failures of Silicon Valley Bank and Signature Bank, the US Fed may continue with its rate hike cycle,” said Jitendra Upadhyay, Senior Equity Research Analyst, Bonanza Portfolio Ltd.

Meanwhile, global shares fell for a sixth day today amid a brewing US banking crisis that prompted investors to downgrade their expectations for interest rate hikes.

“Asia-Pacific markets tumbled and European markets were mixed on Tuesday, after sharp losses seen overnight on Wall Street as investors grappled with the fallout of failed banks in the US and an uncertain path forward for monetary policy. Investors will be keeping a close watch on the US consumer price index for February, due to be released Tuesday,” said Deepak Jasani, Head of Retail Research, HDFC Securities.