Investors have earned Rs 11.13 lakh crore in last three sessions as Sensex managed a V-shaped recovery after suffering its biggest ever loss on March 23. A recovery in global markets on the back of a $2-trillion stimulus for the US economy, hopes of a stimulus to contain coronavirus cases in India and value buying in blue chips led to the bounce-back in Sensex during last three sessions.
On Monday, BSE market capitalisation stood at Rs 101.86 lakh crore compared to Rs 112.99 lakh crore today. Since then, Sensex has gained 3,964 points. Nifty too has managed a 1,035-point gain in last three sessions.
On March 23, Sensex closed 3,934 points lower at 25,981 and Nifty lost 1,135 points to 7,610. Since then, Sensex has gained 692 points on Tuesday, 1,861 points on Wednesday, and 1,411 points on Thursday.
Improved sentiment in market can be gauged by the fall in India VIX, the volatility index of Indian indices. The index fell 8% and closed at day's low of 71.10%. NSE VIX has fallen 14.8% to 72.6 in last two trading sessions from the high of 85.39, indicating falling volatility in the market.
Despite recovery from Monday blues, Sensex is still down 27.41% since the beginning of this year and has lost 24.50% in the last one year. In one month, the index has declined 29.20%.
Similarly, Nifty has lost 29.50% in one month, 26% during the last one year and 28.98% since the beginning of this year.
The carnage in Indian markets during February and March can be attributed to the rising number of coronavirus cases across the world, which dampened global market sentiment.
In March alone, Indian market has hit circuit breaker twice. On March 23, trading was halted at 9:58 am for 45 minutes, when Sensex hit circuit breaker of 10%. Later, it posted its biggest single-day loss of 3,934 points. Nifty too lost 1,135 points, its highest loss ever. The Monday carnage wiped out investor wealth worth Rs 14.23 lakh crore in a single session.
By that day, investors had lost Rs 58.71 lakh crore in market wealth compared to market cap on February 20 when indices hit record highs.On March 13, Nifty hit circuit breaker of 10.07% at 9:20 am after which trading was halted for 45 minutes in Indian equity market as world markets gauged effect of lockdown in major economies including the US in response to rising cases of coronavirus.
Coronavirus cases in India have touched 649, including 13 deaths. Globally, the virus has killed over 21,000 people, with over 4.8 lakh people found positive for the infection.