As North Korea’s and the US continue to up the war rhetoric, Indian investors have lost nearly $100 billion (Rs 6.4 lakh crore) in just four trading sessions. The Bombay Stock Exchange’s market capitalisation has crashed to Rs 133.1 lakh crore.
According to a Reuters report, on August 7, BSE’s market cap had closed at Rs 139.5 lakh crore, an all-time high. In its northward journey, Dalal Street had taken 23 trading sessions to reach Rs 139.5 lakh crore market cap from Rs 133 lakh crore on July 6.
Across the world, the blow in investors’ wealth was more than $1 trillion in the current week, a Reuters report said.
On Friday, 11th August, the sensex lost another 1%, or 318 points to close at 31,214, a two-month closing low while the nifty lost 1.1%, or 109 points at 9,711 points. During the week, the sensex mislaid about 1,100 points, or 3.4%.
The fall in the India market came on the back of a sell-off across the globe.
On Thursday night, the Dow Jone Index in the US closed nearly 1% lower and S&P 500 index lost 1.45% while in Europe, FTSE in UK lost 1.5%.
Market players across the globe, however, are nearly clueless about the possible risks in case a war breaks out between the US and North Korea. A note to investors by Aditya Birla Money quoted Timothy Ash, a senior strategist from London, saying it was “hard to price a potentially ‘extinction event’ like a nuclear war”.