(ET)
The carnage on Dalal Street on a scary Friday shaved off $70 billion off domestic equities, sending shivers down investors’ spine. The combined market capitalisation of all companies listed on the BSE fell by Rs 4.7 lakh crore to Rs 148.4 lakh crore, from just Rs 153.1 lakh crore previously, as bulls gave in to bears. A total of 2,500-odd stocks tumbled against 300-odd that managed to rise, suggesting the sell-off was broad based, with smallcap and midcap shares at the receiving end.
“Definitely, there was a lot of froth in the market and midcaps were trading at very high valuations. We were also finding it difficult to recommend stocks now or 10 days back. But in the last 10 days, the good thing is that the selling started at least 7-8 days before the Budget. So, a lot of correction has happened before. We are seeing this capitulation may continue on Monday.
