An evening walk down D-Street: Black Monday! Investors lose Rs 1.25 lakh cr amid volatility

It was a Black Monday for the Street as investors lost Rs 1.25 lakh crore on the BSE in a single trading session, thanks to the global volatility.

The average market capitalisation of BSE listed companies fell from Rs 151.62 lakh crore recorded on May 3 to Rs 150.37 lakh crore on May 6 which translates into a fall of Rs 1.25 lakh crore.

India VIX rose 10 percent and the market breadth was inclined towards the sellers. All the sectoral indices except IT were in the red on May 6.

In terms of sectors, the S&P BSE Consumer Durable index plunged 2.8 percent followed by the S&P BSE Metal index which was down 2.07 percent, and the S&P BSE Realty index was down 1.5 percent.

Bears retained their hold on D-Street as weak global cues pushed benchmark indices below their crucial short-term moving averages in a single trading session on Monday.

Global investors were caught off guard after the US President Donald Trump threatened to raise tariffs on USD 200 billion worth of Chinese goods & services, triggering a global rout in risky assets.

Trump had earlier cited good progress in trade talks and praised his relationship with Chinese President Xi Jinping, said a report.

Chinese benchmark CSI 300 fell around 6.8 percent and Hang Seng was down by 3.4 percent intraday. The worsening situation has put the entire world in a state of flux where even a tiny escalation can cause big damage, but the situation is temporary and D-St should see a recovery on Tuesday, said experts.