Extending losses for the sixth straight session, the BSE benchmark Sensex tanked 1200 points.
New Delhi: Investors wealth eroded by a whopping Rs 5.4 lakh crore amid massive selling in the stock market where the BSE benchmark index plummeted 1200 points in the opening trade on Tuesday.
The BSE Sensex dipped below the 34,000-level by plunging around 1200 points amidst heavy losses in metal, realty, capital goods, banking and oil & gas stocks. Global rout in equity markets also dampned sentiments further.
The US Dow suffered its deepest fall in history, erasing all of its 2018 gains, while the S&P 500 took a beating to sit down for the year yesterday.
Talking to Zee News, Gaurang Shah of Geojit Financial Services said, “Today’s crash doesn’t come as a surprise. This is a cascading impact of the global rout. And there can be further pain in mid cap, small cap and micro cap.”
However, in the large cap, if customer have alleviated risk appetide, then 15 to 20 percent of the total portfolio can be deployed at the current level. For those with higher risk appetide, Infrastructure, Banking, Auto and auto ancillaries, metals and cement are sectors to look forward to, Shah further added.
Talking about the erosion in market capitalisation, he said that Sensex has seen over 3000 points correction and Nifty over 1000 points correction as compared to level last seen on January 31,2018.
We should adopt a wait and watch policy. RBI is going to announce credit policy tomorrow and earning reports are yet to be unfolded, Shah added.
Sensex and Nifty have heavy selling post announcement of the Union Budget. Investors have also been left disappointed with LTCG coming in over and above STT.