The market capitalisation of companies listed on the Bombay Stock Exchange (BSE) fell to a 10-month low in the concluding week, as overseas investors offloaded shares in the domestic stock market amid growing worries on the Indian economy.
The BSE market capitalisation fell to Rs 93.83 trillion on Friday, reaching a level not seen since October 2014. The benchmark BSE Sensex plunged 562 points or 2.2% on the last trading day of the week to close at 25,201 points, posting a 13-month low. Overall, the Sensex lost more than 1,000 points in the week.
Banking, auto, real estate, oil and metal stocks saw a massive erosion in their market capitalisation due to a high volatility in the markets.
Market capitalisation of state-owned Oil and Natural Gas Corp (ONGC) fell by over 15,300 crore during the week despite the company's overseas arm buying a 15% stake in Vankorneft, a subsidiary of Russia's oil giant Rosneft.
ONGC Videsh Ltd (OVL) has reportedly paid $1.25 billion (Rs 8,250 crore) for a stake in Vankorneft, a source familiar with the development told Reuters.
Profit booking led to a sell-off in the IT stocks, resulting in a decline in their market capitalisation. IT stocks have shown some strength in the past few weeks due to a deprecating rupee.
Weak gross domestic product (GDP) in the first quarter, concerns on China slowdown, rising crude oil prices and rising expectations over the interest rate hike by the US central bank were the major negatives that hit the markets during the week.