Rs 18,000,000,000,000 lost in 7 days
On Wednesday morning, the Indian stock market may have opened high on the back of a 0.75% rate cut by the US Fed, giving some respite to market players. But investors on Dalal Street have lost a whopping Rs 18.05 trillion in the last seven days of market mayhem that included a fall of more than 4,000 points in the benchmark 30-share Sensitive Index or Sensex.
The Bombay Stock Exchange, which opened on a weak note Tuesday morning, managed to rebound from the day's low but finally ended the day at 16,729.94, a fall of 875.41 points. On Wednesday it has risen smartly, with major index stocks ruling high.
However, on Tuesday, within minutes of the market opening, investors had lost over Rs 6 trillion. Trading was immediately suspended for an hour after the 30-share barometer hit the circuit limit of 10 per cent.
On Tuesday alone investors lost over Rs 6 trillion. Add to it the over Rs 12 trillion loss suffered by investors on Dalal Street in the last six days.
"Retail investors should stay away from markets for the next few days. If they intend to invest they should go for mutual funds. Investors with a long-term perspective should however go for a stock specific approach," R K Gupta, managing director, Taurus Asset Management Co said.
Prior to Wednesday, the Sensex lost 4,097.51 points in the last seven trading sessions, including Tuesday, while investors wealth measured in terms of cumulative market capitalisation of all the listed companies has declined by a whopping Rs 15,82,634.48 crore (Rs 15.826 trillion).
"Small investors should stay away from the markets as of now. Let the market normalise and the volatility reduce," domestic brokerage firm, Rajesh Jain, president, SMC Global said.
As per information available on the Bombay Stock Exchange website, the total market capitalisation of all the listed companies stood at Rs 55,56,176.85 crore (Rs 55.561 trillion) at the end of Tuesday's trading against Rs 71,38,810 crore (Rs 71.388 trillion) before bourses began business on January, 14.
The 30-blue chip stocks, which comprise the Sensex, witnessed a combined loss of Rs 1,31,819.78 crore (Rs 131.820 trillion) on Tuesday with its market cap falling to Rs 23,31,319.22 crore (Rs 23.313 trillion) from Monday�s Rs 24,63,139 crore (Rs 24.631 trillion).
And it was not just the retail investors who suffered. India's five richest businessmen, including Mukesh and Anil Ambani, are estimated to have lost close to Rs 2,00,000 crore (Rs 2 trillion) in the stock market meltdown.
The five individuals account for nearly one-eighth of the total erosion of close to Rs 16,00,000 crore (Rs 16 trillion) in the past seven trading sessions.
The losses are related to the five groups headed by Mukesh Ambani, Anil Ambani, KP Singh, Azim Premji and Sunil Mittal. Their companies have lost almost $90 billion (Rs 3,36,000 crore) in this period.
The total investors' wealth, measured in terms of market capitalistion of all the listed companies, has plunged by Rs 15,80,000 crore (Rs 15.8 trillion) since last Monday.
Mukesh Ambani group, comprising the country's most valued firm Reliance Industries as well as Reliance Petroleum and Reliance Industrial Infrastructure, has lost Rs 1,45,245 crore (Rs 1.452 trillion).
Reliance Industries Ltd itself has lost over Rs 27,059 crore (Rs 270.59 billion) in one day, taking its market value to Rs 3,42,777 crore (Rs 3.428 trillion) from Rs 3,69,837.28 crore (Rs 3.698 trillion on Monday).
RIL, one of the biggest among the heavyweight stocks has lost over Rs 1,12,170.39 crore (Rs 1.122 trillion) in seven days.
Anil Ambani group, which consists of Reliance Energy, Reliance Communications, Reliance Capital, RNRL and Adlabs Films, has lost Rs 1,04,500 crore (Rs 1.045 trillion). REL, whose unit Reliance Power attracted bids worth $190 billion for its initial public offer, fell 3.36 per cent amid speculation that the subsidiary may list below the issue price of Rs 450 a share.
The total market value of the five groups has dropped to Rs 10,10,505 crore (Rs 10.105 trillion) at the end of Tuesday�s trade, from Rs 12,46,750 crore (Rs 12.468 trillion) on January 11.
K.P Singh-led DLF lost close to Rs 56,000 crore (Rs 560 billion), while losses for Premji's Wipro and Mittal's Bharti are Rs 8,340 crore (Rs 83.40 billion) and Rs 22,104 crore (Rs 221.04 billion), respectively.
In percentage terms, MDA group has lost 26 per cent, ADA group has lost 31.5 per cent, DLF 27.5 per cent, Wipro 11.8 per cent and Bharti 12 per cent.
In terms of personal wealth, Anil Ambani is estimated to have lost the maximum of about $17 billion among the five, followed by Mukesh�s $13 billion while Singh lost close to $12.7 billion. Premji and Mittal have lost about $1.75 billion each.
At the end of Tuesday�s trade, the collective wealth of the five stood at about $132 billion, as against about $179 billion as on January 11, before the meltdown began.
According to a list published by the US magazine Forbes late last year, the total wealth of the five had stood at $156.3 billion as on November 2.
The current wealth figures have been derived after taking into account the change in market value figures of the groups headed by the five businessmen since November 2, the base date considered by the Forbes magazine.
Mukesh Ambani's current wealth is estimated at about $38.5 billion, Anil Ambani ($37 billion), Singh ($32 billion), Mittal ($11.8 billion) and Premji (close to $12.8 billion).
State-run Oil and Natural Gas Corp has over lost over Rs 32,446 crore (Rs 324.46 billion) with its market cap falling to Rs 2,05,834 crore (Rs 2.058 trillion) on Tuesday compared to Rs 2.38 trillion on Monday.
The Sensex has slumped more than 25 per cent from its closing peak on January 8, joining benchmarks in Asia and Europe into a bear market and extending a global selling.