Date:08/10/2008 URL: http://www.thehindubusinessline.com/2008/10/08/stories/2008100851691500.htm

Back Indian stock market lost Rs 2.3 lakh cr in Sept: Crisil

Our Bureau

Mumbai, Oct. 7 It is estimated that Rs 2.3 lakh crore of shareholders wealth eroded in the Indian stock markets in the background of the situation in the US financial markets, said a press release from Crisil.

While the fall in the US markets was lower with S&P 500 index falling by around nine per cent and and Dow Jones index falling by six per cent, emerging markets lost around 18 per cent during September, the release says.

The benchmark index Sensex fell by more than 11 per cent and Nifty around 10 per cent. The Nifty registered its second sharpest fall since January 2008.

“The BSE Realty Index and the BSE Metal Index were the most severely affected during the month,” said Mr Chetan Majithia, Head-Equities, Crisil Research.

While a 15 per cent decline in average crude oil prices during month provided some reprieve, the impact was partially negated by the 7 per cent decline in the value of the rupee against the dollar. Further, global liquidity pressures affected FII investments in the country, adding to the weakness of Indian markets.

The foreign institutional investors were net sellers to the tune of Rs 8,278 crore in September, according to the data on SEBI.