Sensex tumbles over 800 points. Here's how much money investors lost

Analysts attributed the selloff to continued foreign investor outflows and disappointing quarterly earnings, particularly in banking and auto sectors. Foreign institutional investors (FIIs) reportedly offloaded Rs 2,306 crore worth of Indian equities, extending their selling spree.

In Short

• Sensex drops 821 points, wiping Rs 5.76 lakh crore value
• Foreign outflows, weak earnings drive market into negative territory
• Rising inflation fears weigh on investor sentiment and RBI policy

The stock market saw steep losses today, with S&P BSE Sensex and NSE Nifty50 both reversing early gains to close in negative territory.

The Sensex shed 821 points, a 1.03% drop, to end at 78,675, while the Nifty50 fell 258 points, or 1.07%, to close at 23,883. The decline led to a reduction in the market capitalisation of BSE-listed companies by Rs 5.76 lakh crore, pushing it down to Rs 436.78 lakh crore.

Key stocks like NTPC, HDFC Bank, Asian Paints, SBI, Tata Motors, and Maruti Suzuki were among the biggest drags on the Sensex, with losses of 2-3%. HDFC Bank alone accounted for a 316-point impact on the index.

Analysts attributed the selloff to continued foreign investor outflows and disappointing quarterly earnings, particularly in banking and auto sectors. Foreign institutional investors (FIIs) reportedly offloaded Rs 2,306 crore worth of Indian equities, extending their selling spree.

Adding to the downward pressure was a dip in Asian markets, driven by losses in Chinese stocks and technology shares, as well as a further slump in the Indian rupee, which hit an all-time low against the US dollar.

Oil prices, which inched up due to concerns over China’s stimulus measures, and retail inflation data also contributed to market jitters.

Inflation in October rose to a 14-month high and is anticipated to influence the Reserve Bank of India’s policy on interest rates in the coming months, further heightening uncertainty in the market.

With foreign outflows persisting and domestic concerns looming, investor sentiment remained cautious, awaiting signs of stability in both global and domestic economic indicators.

Vinod Nair, Head of Research, Geojit Financial Services noted that FII-triggered selling pressure continued to impact the domestic market.

"The recent strengthening of the dollar, driven by aggressive ‘Trumponomics’ is adding fears. Additionally, the anticipated rise in domestic inflation, due to increasing food prices, along with depreciating INR, may influence the RBI’s monetary policy. Most sectors were in the red, while IT stocks gained on expectations of increased US IT spending," he said.