NEW DELHI: After a runaway rally in the past few weeks, the domestic equity market has come under severe pressure.
In six days of continuous fall, the BSE Sensex has shed 878 points.
In the process, the total market capitalisation of all the BSE-listed companies has slipped by Rs 3.31 lakh crore.The m-cap of BSE-listed was Rs 158 lakh crore at the end of session of August 28, that slipped to Rs 155 lakh crore as of September 5.Indian equity benchmark Sensex fell for a sixth consecutive session on Wednesday on sustained profit-booking on falling rupee and rising bond yields.
Depressed global cues have also added to the misery."Global headwinds coupled with risk arising on account of surging oil prices and weak trend in EM currencies dragged the market.
The selling pressure was witnessed across the market in which highly valued consumption and mid-cap stocks were impacted the most.
Investors are likely to remain cautious as spike in yield and widening deficit will add to the risk of inflation," said Vinod Nair, Head of Research, Geojit Financial Services.On Wednesday alone, the BSE m-cap fell by Rs 73,088.56 crore.
The market breadth was in the red as 1,784 stocks declined on BSE, compared with 981 advancers.Investment made easy4 Sep, 2018 The world of value investment loves to bask in the glory of its shining star, that is Benjamin Graham.Known as father of value investing, Graham is a firm believer in margin of safety.
Given the kind of turbulence the market these days is going through, Graham's sayings assume criticality like never before.For one, he talked about irrationality of investors.
Graham believed that picking undervalued or out-of-favour stocks provides the much-needed buffer zone.
His famous book, The Intelligent Investor, is a profound contribution that reflects his thinking to the hilt.There are many more gems from Graham.
We reel off a few to help you make sense of the market behaviour and make your next move.Being a realist pays4 Sep, 2018 The intelligent investor is a realist who sells to optimists and buys from pessimists.A minefield out there!4 Sep, 2018 An investment operation is one which upon analysis promises safety of principal and an adequate return.
Operations not meeting these requirements are speculative.Get the basics right4 Sep, 2018 In the short run, the market is a voting machine.
But in the long run, it's a weighing machine.Look within 4 Sep, 2018 Investing is not about beating others at the game.
It's about controlling yourself at your own game.Other emerging markets have also been reeling under pressure ever since Turkish lira plunged to its lows, initiating a fall in other emerging market currencies.The rupee touched fresh record low of 71.965 against the US dollar today.
This year, rupee has fallen 12 per cent, only to place itself as the worst performing currency in Asia.