Investor wealth slumped by Rs 3.7 lakh crore on Monday, as the equity market recorded its biggest single-day fall in two months.
At the close of trade, the total market capitalisation of BSE listed companies eroded by Rs 3,71,883.82 crore to Rs 2,00,26,498.14 crore.
The volatility index, India VIX, meanwhile, shot up 13 per cent to 25.1 levels.
The total market capitalisation of BSE listed companies stood at Rs 2,03,98,381.96 crore on February 19.
Spiralling lower for the fifth straight session, the Sensex plummeted 1,145 points or 2.25 per cent to close at 49,744.32. The broader NSE Nifty sank 306.05 points or 2.04 per cent to finish at 14,675.70.
Indian shares extended losses to a fifth session on Monday, dragged down by index heavyweight Reliance Industries and financials as investors sold off recent high-flying stocks.Equities in India rose sharply in the first two weeks of February, driven by solid corporate earnings, a well-received federal budget and strong foreign fund inflows.
''The market failed to show resilience to stay above the Nifty 50 Index level of 14,750. While it is subject to further price action evolution, the technical factors shifted today to support a further correction in the future,'' said Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.
Biswas further said any corrective wave down should find support around 14,500-14,300.
''Traders are refraining from building a new buying position until we witness a correction till 14,300-14,500 level. The volatility is observed to expand in today's trading session indicating profit booking and stock distribution at a higher market level,'' he noted.
Sector-wise, BSE energy, realty, IT, teck, auto and capital goods indices skidded up to 2.92 per cent, while metal and basic materials ended with gains.
Broader BSE midcap and smallcap indices fell up to 1.34 per cent.After opening in the green, benchmark indices plunged in the red. At 1.59 pm, BSE flagship Sensex was down 1,031.29 points or 2.03 per cent to 49,858.47. NSE benchmark Nifty followed and fell 285.6 points or 1.91 per cent to 14,696.15.