New Delhi: Investors' wealth dropped Rs 6.31 lakh crore on Monday, mirroring a sharp decline in benchmark indices, due to a heavy sell-off in global equities and surging crude oil prices amid rising tensions in West Asia.
Extending losses for the second straight session, the 30-share BSE Sensex tanked 719.08 points, or 0.97 percent, to settle at 73,524.26. During the day, it slumped 924.4 points, or 1.24 percent, to 73,318.94.
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The 50-share NSE Nifty dropped 243.70 points, or 1.04 percent, to end at 23,123.
The market capitalisation of BSE-listed companies eroded by Rs 6,31,440.41 crore to Rs 4,55,28,758.96 crore (USD 4.76 trillion) in a single day.
"Global sentiment has weakened amid a flare-up of tensions in the Middle East, pushing crude towards USD 100/bbl. Simultaneously, global technology stocks have witnessed a sell-off, as investors begin to question the sustainability of the AI-led rally.
"Selling pressure was also seen in semiconductor-heavy indices, showing early signs of valuation fatigue and positioning unwind, although it is premature to classify this as a trend reversal," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Among the Sensex firms, Eternal, InterGlobe Aviation, Mahindra & Mahindra, Reliance Industries, Tata Consultancy Services, and Bajaj Finance were among the biggest laggards.
In contrast, Power Grid, Tech Mahindra, Bharat Electronics, and Bharti Airtel were among the winners.
The BSE SmallCap Select index tanked 1.61 percent, and the MidCap Select index dropped 1.51 percent.
Sectorally, realty dived 2.57 percent, metal (2.43 percent), telecommunication (2.28 percent), commodities (2.09 percent), industrials (2.06 percent), capital goods (1.98 percent) and auto (1.85 percent).
A total of 3,117 stocks declined, while 1,249 advanced and 171 remained unchanged on the BSE.
"The sell-off was primarily triggered by a sharp correction in global equities and a spike in crude oil prices following renewed geopolitical tensions in the Middle East. Brent crude climbed above USD 96 per barrel after escalating hostilities involving Iran and Israel," Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
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In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng ended significantly lower. The Kospi plunged 8.29 percent, while the Nikkei 225 index dropped 3.85 percent.
US markets ended sharply lower on Friday. The Nasdaq Composite tanked 4.18 percent, while the S&P 500 dropped 2.64 percent and the Dow Jones Industrial Average declined 1.35 percent.
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