Black Thursday wipes out almost Rs 7 lakh crore in investor wealth; near-term outlook bleak

Midcap and small-cap indices underperformed the frontline indices causing huge losses to retail investors who tend to invest in these counters.

Published: 19th May 2022 07:22 PM  |   Last Updated: 19th May 2022 07:22 PM   |  A+A-

Illustration: Soumyadip Sinha

Express News Service

MUMBAI: Investors lost Rs 6.72 lakh crore in wealth on Thursday as stocks tanked in line with global markets taking cues from the Dow Jones and Nasdaq which fell overnight by 3.57% and almost 5% .  

The Nifty and Sensex shed 2.6% each with the former correcting 431 points to close at 15809.4 and the latter by 1416.30 points to 52792.23 .

The top 5 Nifty losers were tech stocks -- Wipro , HCL Tech, Tech M, Infy and TCS -- which shed 5.4-6.25% reflecting the carnage on the Nasdaq.

The selling was led by FIIs who sold shares worth a provisional Rs 4899.92 crore.

DII buying worth a provisional Rs 3225.54 crore was not able to cushion the fall as retail investors also pressed the panic button with the Nifty Midcap 100 falling by almost 3% and the Nifty Smallcap 100 by 2.7% to 27271.9 and 8912.3 points each.

ALSO READ | Rupee closes at all-time low of 77.72 USD

Midcap and small-cap indices underperformed the frontline indices causing huge losses to retail investors who tend to invest in these counters.

The outlook for markets looks bleak in the near term with earlier supports becoming resistances.

"Nifty fell towards the previous swing low on the back of a gap down start. The trend has turned negative as the Nifty fell below 16000," said Rupak De, senior technical analyst at LKP Securities . "The immediate support is seen at 15671; below 15671 further correction towards 15400 looks possible. On the higher end, resistance is placed at 16000."

Analysts like SK Srivastava, founder, IndiaCharts, expects the Nifty to slide to 15200, implying an almost 4% downside.

The pessimistic mood was reflected by the fear gauge India Vix rising by 10% to 24.56. A reading above 20 signals negative market sentiment.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp