Mumbai, February 19 Investors' wealth eroded by nearly Rs 7 lakh crore on Thursday as the stock markets took a heavy beating, with the BSE Sensex tumbling 1,236 points or 1.5 per cent amid escalating geopolitical tensions between the US and Iran.
The 30-share BSE Sensex fell by 1,236.11 points, or 1.48 per cent, to close at 82,498.14. During the day, the benchmark plunged 1,470.05 points, or 1.75 per cent, to hit an intraday low of 82,264.20.
The market capitalization of BSE-listed firms slumped by Rs 6.79 lakh crore (Rs 6,79,210.1 crore) to Rs 465 lakh crore (Rs 4,65,22,014.57 crore).
Selling pressure was widespread, led by IndiGo, followed by Mahindra & Mahindra, UltraTech Cement, Trent, Bharat Electronics Ltd, Adani Ports, Kotak Mahindra Bank, Reliance Industries, Tech Mahindra, ITC, Eternal, and PowerGrid.
The sharp sell-off in equities today was triggered by news of an imminent US strike on Iran. US Vice President JD Vance's statement that Iran did not meet all expectations of Washington and that the President has the military option to strike Iran, sent fear in the markets, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
He added that Brent crude shot up above USD 70 per barrel and the fear gauge India VIX rose by 9 per cent.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 880.49 crore on Thursday, while domestic institutional investors were also net sellers of stocks worth Rs 596.28 crore, according to exchange data.
"Institutional selling – both domestic and foreign – was limited. Yet, the Sensex tanked by 1,236 points, reflecting fear in the market."
"The market rally during the last three days, assisted by improving Q3 numbers and FIIs turning buyers, enabled profit booking by bulls. This magnified the selling pressure, finally ending in a sharp correction," Vijayakumar said.
In European markets, Berlin's DAX declined the most by 1 per cent, Paris' CAC 40 by 0.86 per cent, and London's FTSE 100 by 0.76 per cent.
In Asian markets, South Korea's Kospi settled 3 per cent higher, while Japan's Nikkei 225 benchmark closed 1 per cent higher. Markets in Hong Kong and mainland China remained closed for the Lunar New Year holidays.
Broader indices ended lower, with the BSE Midcap Select Index declining 1.71 per cent, while Smallcap Select Index fell 0.98 per cent.
Among the sectoral indices, Realty dropped the most by 2.54 per cent, followed by Power by 2.22 per cent, Capital Goods by 2.18 per cent, Services by 2.11 per cent, Auto by 2.09 per cent, Consumer Discretionary by 1.91 per cent, Utilities by 1.90 per cent, and Industrials by 1.81 per cent.
A total of 2,927 stocks declined, while 1,276 advanced and 164 remained unchanged on the BSE.