Investors' wealth down Rs 4.92 lakh cr as markets slump

New Delhi, Dec 17: Investors' wealth tumbled Rs 4.92 lakh crore on Tuesday amid a sharp sell-off in the equity market where the Sensex tanked 1,064 points.

Falling for the second day in a row, the 30-share BSE benchmark Sensex tanked 1,064.12 points or 1.30 per cent to settle at 80,684.45. During the day, it slumped 1,136.37 points or 1.39 per cent to 80,612.20.

The market capitalisation of BSE-listed firms eroded by Rs 4,92,644.06 crore to Rs 4,55,13,913.24 crore (USD 5.36 trillion).

"The Indian stock markets witnessed a sharp decline on Tuesday, with the benchmark BSE Sensex sinking 1,064 points or 1.30 per cent to 80,684.45.

"Investor sentiment remained cautious ahead of the US Federal Reserve's monetary policy meeting, scheduled for Wednesday. While markets have priced in a 25 basis points rate cut, much of the focus is on Fed Chair Jerome Powell's commentary regarding future rate moves," Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher, said.

From the 30-share blue-chip pack, all firms ended in the red. Bharti Airtel, IndusInd Bank, JSW Steel, Tata Consultancy Services, Asian Paints, Larsen & Toubro, Reliance Industries and HDFC Bank were the biggest laggards from the Sensex pack. In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled lower.

European markets were mostly trading in negative territory. Wall Street ended mostly higher on Monday.

"Widespread pessimism prevails across all sectors ahead of key policy decisions from the US Fed, BoJ (Bank of Japan), and BoE (Bank of England). While the market has already factored in a 25 bps cut from the US Fed, it remains vigilant for any hawkish signals. The BoJ and BoE are largely expected to maintain their current rates for the year.