Indian Markets Reeling: Rs 13 Lakh Crore Investor Wealth Erased

Over the past five trading days, the Indian stock market has seen a significant downturn, wiping out Rs 13 lakh crore in investor wealth. Key indices Nifty and Sensex have declined over 4% amidst geopolitical tensions and regulatory changes, raising concerns among investors about the market's future stability.

In just five trading sessions, the Indian stock market has experienced a severe erosion of investor wealth, with approximately Rs 13 lakh crore wiped out. Data from the Bombay Stock Exchange (BSE) indicates a drop in total market capitalization from Rs 479 lakh crore last week to Rs 466 lakh crore this week.

The key indices, Nifty and Sensex, have both been impacted by continuous selling pressure, marking a decline of more than 4% each in the last five days. This downturn followed a previous period of strong market performance when the Sensex reached a high of 85,978.25 points and the Nifty 50 hit 26,277.35 points last Friday, driven by a rate cut announcement from the U.S. Federal Reserve.

However, recent geopolitical tensions, such as the conflict between Iran and Israel, have fueled uncertainty in global markets. Vivek Karwa of VRIDHI Investment highlighted that the BSE Sensex fell more significantly than the overall market, suggesting a shift in investor focus. Meanwhile, changes by SEBI in the Futures & Options market have also contributed to negative sentiment. Investors remain vigilant for potential market stabilization.

(With inputs from agencies.)