Benchmark indice pared losses after sliding more than 3% in intra-day trade a global market rout whacked sentiment, adding to existing investor concerns ahead of Reserve Bank of India (RBI) meeting this week to review key rates.
Investors lost around Rs 4.95 trillion amid sell-off in the broader market on Tuesday where the benchmark BSE Sensex tumbled 1,275 points or 3.6 per cent in opening trade.
The BSE Sensex cracked below the 34,000-mark by plunging about 1,275 points or 3.6 per cent in opening trade today due to across-the-board losses after investor sentiment was hit by a sell-off in world markets.
Following the downfall, the total market capitalisation of BSE listed companies eroded by Rs 4.95 trillion to Rs 14.3 trillion.
Extending its falling streak for the sixth straight session, the 30-share index fell by 1,274.35 points, or 3.66 per cent, to 33,482.81 with all sectoral indices led by realty, consumer durables, metal and banking tradings in the negative zone.
On BSE, 2,221 stocks declined, while 169 advanced and 83 remained unchanged.
Domestic brokerage firm Angel Broking in a report today said that a fall in Indian markets is likely amid sell off in global indices.
"US stocks suffered one of their worst days in recent history in the last trading session, as markets continued to throw a tantrum over rising interest rates.
The Dow Jones ended on downside of 4.6 per cent to close at 24,346 and the Nasdaq Composite edged down to 3.8 per cent, to 6,968," it said.
Moreover, UK shares tumbled as a strong US jobs report reinforced the Fed's outlook for three interest-rate hikes this year and investors looked ahead to a new round of talks between the UK and European Union. The FTSE 100 was down by 1.5 per cent to close at 7,335, it added.
Gold pricing touches 14-month high
Amidst rout in global equities on Tuesday gold soared to over 14-month high of Rs 31,600 per ten gram – gaining Rs 330 at the bullion market here, largely in sync with the overseas trend.
The gains were also supported by strong demand from local jewellers to meet the wedding season demand.
Silver gained as well and reclaimed the Rs 40,000-per kg mark on the back of increased offtake by industrial units.
Traders said a massive sell-off in stock markets globally led investors to seek shelter in safe haven investments, particularly precious metals.
Market rout wipes $114 billion from fortunes of world's richest
A plunge in US stocks Monday cut the fortunes of the world's 500 richest people by $114 billion as the optimism over tax cuts that fueled January's gains gave way to worries about inflation.
Berkshire Hathaway Inc. Chairman Warren Buffett, the world's third-richest person, was hardest hit, losing $5.1 billion, according to the Bloomberg Billionaires Index. Berkshire is the biggest shareholder of Wells Fargo & Co., which plunged 9.2 per cent, the most in the S&P 500. Buffett, 87, was one of 18 billionaires in the Bloomberg ranking to lose more than $1 billion on the day. Facebook Inc. CEO Mark Zuckerberg's fortune tumbled by $3.6 billion, the second-biggest decline.
Even Amazon.com Inc. Chief Executive Officer Jeff Bezos, the world's richest person, wasn't immune to the carnage. His fortune slipped $3.3 billion to $116.4 billion as shares of the retail behemoth fell 2.8 per cent. Alphabet Inc.'s Larry Page and Sergey Brin each took hits of about $2.3 billion.
The rout followed more modest declines on Friday that erased $68.5 billion in wealth from the world's 500 richest people.