A month ago, the Sensex was on a bull-run, setting new all-time high records practically every day. On August 29, Sensex hit a peak of 38,989.65. Since then, markets have been on a downward spiral. In fact, Rs 22 lakh crore in market cap has been wiped out from the Sensex since September 2018.
28 out of the 30 companies on BSE 30 display negative growth in share price during the past month. Just two companies show a growth in share price.
Total equity market capitalisation of BSE in the beginning of September stood at over Rs 158 lakh crore, which fell by almost Rs 22 lakh crores, or over 13 per cent, in a span of 23 sessions. The market cap of BSE Sensex stood at over Rs 135 lakh crore as on October 9th
Yes Bank, Bharti Airtel, Maruti Suzuki, Adani Ports and IndusInd Bank were the top 5 losers on BSE. These companies saw a decline of 35.22 per cent, 23.38 per cent, 22.08 per cent, 21.20 per cent and 20.63 per cent in their share price, respectively. Other companies that lost more than 10 per cent of their share price include Tata Motors, Mahindra & Mahindra, ONGC, Kotak Mahindra Bank, SBI, Hero MotoCorp, ITC, Housing Development Finance Corporation, Axis Bank and Reliance Industries (RIL).
Wipro and Tata Consultancy Services were the only two companies which gained in share price. Wipro grew by 2.54 per cent while TCS gained 0.29 per cent in share price.
The downward movement of domestic stock markets can be attributed to falling rupee, rising crude oil prices, higher US yields and relentless selling by foreign investors . Brent crude oil prices have seen an appreciation of 8.20 per cent since September while Indian rupee has seen a depreciation of 4.05 per cent in the same time frame.
Worse, according to experts, these market fears and rumours are likely to rule the roost till the general elections of 2019. Hence, investors must brace for such events. But there's a silver lining, too - let's not forget that market routs give long-term investors a chance to accumulate their choicest stocks.