Investors lose 11L cr in 2 sessions

Mumbai: The Nifty followed a similar trajectory as the sensex and closed 311 points lower at 17,016. RIL, ICICI Bank and ITC led the day’s slide while buying in IT stocks, which witnessed relentless selling in the previous few weeks, cushioned the fall marginally. With growing fears of recession in the US and Europe — the two biggest markets for Indian software exporters — these stocks had witnessed strong selling by institutional and retail investors, market players said.
According to Vinod Nair of Geojit Financial Services, a soaring dollar, because of aggressive monetary tightening by several major central banks around the world, slowing economic growth and rising demand from cautious investors, is causing turbulence in the global equity market.“This is creating mayhem in the domestic market led by weakening (rupee), elevated bond yields and pessimistic trends of Asian peers. Only IT sector, which exhibited the weakest performance in the last one year, defied the trend in anticipation that the global recession is mostly factored in and its stocks are trading at reasonable valuations,” Nair said.
The day’s selling left investors poorer by Rs 6.5 lakh crore with the BSE’s mcap at Rs 273 lakh crore. In the last two sessions, investors have lost about Rs 11 lakh crore.