NEW DELHI: A sharp plunge in domestic stocks on Thursday morning wiped off Rs 4 lakh crore of investor wealth within five minutes.Data showed that the combined market capitalisation of all BSE-listed companies got eroded to Rs 134.38 lakh crore in the initial trades, data available with BSE suggested.This is against a market value of Rs 1,38,39,750 crore, the BSE listed companies commanded on Wednesday, and a high of Rs 1,59,34,696 crore they enjoyed on August 30.Domestic stocks plunged in line with Asian shares which fell up to 5 per cent on Thursday, tracking n overnight fall in US stocks.
Technical charts too were indicating a negative outlook despite Wednesdays rise in the domestic market.The NSE Nifty index was trading 307 points down at 10154, while BSE Sensex was down 1,029 points at 33,732.As the session progressed, the stock market regained its footing a bit.
The NSE Nifty reclaimed the 10,200 level, but the BSE Sensex was still down by over 800 points.Among Asian markets, Taiwans weighted index plunged 5.21 per cent.
It was followed by Japans Nikkei (down) 3.7 per cent, Koreas Kospi (down 2.9 per cent) and Shanghai Composite (2.4 per cent).In overnight trade, the SP500 index suffered its biggest one-day fall since February as technology shares tumbled on fears of slowing demand.
The SP technology sector dropped 4.8 per cent, with Apple Inc down 4.6 percent, Reuters reported.The SP500 ended Wednesday with a loss of 3.29 per cent and the Nasdaq Composite index 4.08 percent, while the Dow Jones Industrial Average shed 2.2 per cent, the report added.After Wednesdays bounce, the Nifty50 retested the lower end of the reversal channel that it had broken recently, said Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan.
This is a high-probability area from where the index can kick off the next down leg.
The short-term trend is still in favour of the bears, he said on Wednesday.