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Investors poorer by over Rs 2L cr as markets fall

NEW DELHI: Investor wealth eroded by over Rs 2 lakh crore on Monday after the BSE benchmark index tanked over 491 points following susceptible sentiments within the broader marketplace.

The BSE sensex plunged 491.28 points, or 1.25 in line with cent, to near at 38,960.79 amid fears that India's retaliatory price lists on US goods could open new trade warfare front.

Led by the selling in fairness marketplace, the marketplace capitalisation of BSE-listed firms dropped by Rs 2,00,258.81 crore to Rs 1,50,09,329.19 crore.

"The fear of defaults creating a contagion effect that could further enhance the liquidity crunch, escalation of tensions on trade front and expensive valuations might have led to the culmination of Indian benchmarks," stated Jateen Trivedi, technical research analyst, Bonanza Portfolio Ltd.

Sensex plunges 491 points; Nifty ends below 11,700

Equity indices on Monday finished in pink amid fears of trade warfare as India slapped higher price lists on certain US merchandise in retaliation to Washingtion's decision to remove certain trade priviledges for the rustic.

Concerns over advancement of monsoon and geo-political problems also played spoilsport for the marketplace.

"Markets are currently facing headwinds from both domestic and global front, citing delay in arrival of monsoon, lingering geo-political tension and rebound in the crude oil prices," Jayant Manglik, president - retail distribution, Religare Broking Ltd.

Jagannadham Thunuguntla, Sr VP and head of research (wealth), Centrum Broking stated, "Indian markets had a rough day, as market has been finding it difficult to sustain at elevated levels on the back of muted corporate earnings, slow monsoon season, continuous corporate defaults and developing concerns of India-US trade disagreements."

All BSE sectoral indices ended with losses on Monday with steel, energy and oil and gas indices remaining as much as three in line with cent lower.

From the 30-share pack, 27 scrips ended with losses, led by Tata Steel, Vedanta Ltd, Tata Motors and AXIS Bank Ltd.

At the BSE, 1,879 firms declined, while 685 advanced and 131 remained unchanged.

In the broader marketplace, the BSE mid-cap and small-cap indices also dropped as much as 1.35 in line with cent.

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