Investors lost nearly Rs 5 lakh crore in afternoon trade today after Sensex crashed over 1,800 points amid sell-off in global markets. Market cap on BSE, which hit an all-time closing high of Rs 206.18 lakh crore on February 25, fell to Rs 201.36 lakh crore in afternoon trade, reflecting widespread selling across the sectors and indices. While Sensex crashed 1,848 points to 49,191, Nifty slipped 543 points to 14,554.
On Thursday, Sensex ended 257 points higher at 50,039 and Nifty gained 115 points to 15,097. The crash in the market comes after a three-day gaining streak during which Sensex gained 1,295 points and Nifty rose 422 points.
Why Sensex tanked over 1,800 points in trade today
Benchmark indices had moved higher on positive global cues and government's move to lift the embargo on the grant of GOI business to private lenders. This took BSE market capitalisation to an all-time closing high of Rs 206.18 lakh crore on February 25, 2021.
However, a sell-off in global markets triggered by a sudden crash in US indices took the market lower today.
Ajit Mishra, VP - Research, Religare Broking said,"The rising bond yields in the US have spooked investor sentiments, which has led to a sell-off in global markets. Moreover, the geo-political tensions between US and Iran have also weighed on sentiments. Nifty may see a short term trend reversal below 14,600. We thus advise keeping existing long positions hedged."