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The Heat is On

The week ending May 19 will go down as one of the worst in the history of the Indian stock markets. Investors lost over Rs 3.95 lakh crore or more than four times the total equity assets of the mutual fund industry

The week ending May 19 will go down as one of the worst in the history of the Indian stock markets. Investors lost over Rs 3.95 lakh crore, or more than four times the total equity assets of the mutual fund industry in a span of few days.

The Nifty and Sensex witnessed a massive fall of around 11 per cent. Nifty was down 11.05 per cent for the week ending May 19. The index closed at 3,247 points. For the Sensex the story was pretty much the same. The index ended the week with a loss of 1,347 points or 10.96 per cent. In the last two days of the week the investors lost over Rs 3.53 lakh crore, the biggest ever loss in two consecutives days. The markets, which witnessed a massive fall on May 18, tanked further the next day on the reports of some “market-unfriendly” statements from Left leaders. Foreign funds turned net sellers. They pulled out Rs 1,459 crore on May 19.

The S&P CNX 500 was down 11.64 per cent to close the week at 2767.75 points.

Among the sectoral indices the BSE metal index registered the steepest fall. The index witnessed a meltdown of over 26 per cent over the week. This was primarily because on the first day the week, metal stocks were the ones which took heavy beating. The prices of precious metals like gold and silver also lost some sheen during the period after scaling 26-year highs. The index closed the week at 8704.5 points, shedding over 2,421 points during the week.

The BSE IT index was down 8.93 per cent to close the week at 3,732 points, while the healthcare index fell by 12.75 per cent. The healthcare index was at 4,023 points at the week ending May 12, settled at 3,510.44 points.

The FMCG index also moved in sync with the Sensex, shedding 11 per cent over the week. The index, which closed the week ending May 12 at 2263 points, closed the week ending May 19 at 2,012 points.

The PSU index was also down 11.71 per cent. It closed the week at 5,603 points after settling at 6,346 points during the previous week.

The BSE Bankex also ended the week in the red. The index, which closed the week ending May 12 at 5624 points, closed the week ending May 19 at 5,008 points, shedding over 600 points or 11 per cent.

Indices across the world also witnessed a meltdown.