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Rs 18,000,000,000,000 lost in 7 days
January 23, 2008
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.
An investor reacts to news of the tumbling stock market.
Photograph: Arun Patil
Also read: The 10 biggest falls in Sensex history