Investors Lose ₹60 tn in Little Over 100 Days

Deep impact Since 27 Sep, Nifty 50 has corrected 12%, resulting in a fall of ₹59.61 tn in investor wealth.

- Ram Sahgal

The recent equities sell-off, led by aggressive offloading by foreign portfolio investors (FPI), has eroded investor wealth worth nearly ₹60 trillion in the past three and a half months.

Market veterans expect the pain to last as long as the FPI selling continues amid an uncertain macro environment.

The wealth measured by market capitalization of all stocks stood at ₹473.84 trillion on 27 September, when the Nifty 50 was at a record high of 26,277.35. Since then, the benchmark index has corrected 12% to 23,085.95, resulting in a fall of ₹59.61 trillion in investor wealth to ₹414.23 trillion on Monday. A fall of more than 10% from highs implies a correction, and one of more than 20%, a bear market.

Broader markets like the Nifty Smallcap 250 and the Nifty Midcap 150, too, underperformed, falling by 13.5% each since their highs in late September, also contributing to the fall in the market cap.