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Tuesday, October 07, 2008

Investor's wealth plunges below Rs 40 tn mark

With domestic market buckling under deepening global financial crisis, investor's wealth on Bombay Stock Exchange plunged below the Rs 40 lakh crore mark, while the Sensex slipped under the 12,000 level for the first time in two years.

Total market capitalisation of all the listed-companies on the BSE dropped below the Rs 40 lakh crore-mark to Rs 38,22,354.61 crore today, witnessing an erosion of Rs 2.39 lakh crore in a single day.

The 30-share Sensex closed at 11,801, the lowest level seen since 2006, plunging 724 points.

However, RBI has cut the Cash Reserve Ratio by 50 basis points and market regulator SEBI has removed restrictions of 40 per cent cap on Overseas Derivative Instruments (ODI). Analysts believe the moves would help the markets recover.

Among the Sensex shares, Sterlite Industries was the biggest loser with a fall of over 15 per cent, followed by Reliance Infrastructure which dropped nearly 14 per cent and Jaiprakash Associates which fell 13.57 per cent.

Total market capitalisation of Anil Agarwal-led Sterlite Industries settled at Rs 23,756.83 crore on the bourse.

As Anil Ambani-led Reliance Infrastructure dropped 13.93 per cent to close at Rs 638, its market capitalisation also took a plunge to Rs 14,698 crore. Reliance Communications also ended 9.95 per cent down at Rs 300.05, while its M-cap stood at Rs 61,931.

Besides, the country's most valued firm Reliance Industries today dropped 6.76 per cent to close at Rs 246.45, while its market cap stood at Rs 2,38,685.26.

Further, the market capitalisation of state-run ONGC stood at Rs 2,09,630.90, followed by NTPC at Rs 139,100.98 crore, telecom major Bharti Airtel (Rs 138,491.89 crore) and SBI (Rs 91,054.48 crore).

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