Stocks eroded over Rs 7.36 lakh crore in investor wealth, as concerns over a new little-known South African variant of Covid with several mutations sent shivers down Dalal Street.
The domestic market was already seeing sharp foreign outflows amid rising inflation globally and a hawkish US Federal Reserve stance.
The fresh Covid fears may result in a flight to safe havens and selling in riskier assets, which could only increase equity outflows from emerging markets like India.
Data showed investor wealth, as measured by BSE market capitalisation, plunged Rs 7.36 lakh crore to Rs 258.30 lakh crore from Rs 265.66 lakh crore a day ago, with severe fall coming in the second rung indices that fell up to 3 percent. The market breadth was extremely weak, with two stocks falling for every one that rose.
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