Shareholder wealth is eroding and eroding really fast. On Tuesday it was the RBI's hawkish tone and today it was worries over Monsoon that dragged the Sensex down.
In two days we have lost 1000 points on the Sensex. After Tuesday's loss of 660 points, the Sensex fell by a another 351 points today.
Gloom was seen all over the markets as analysts were quick to hammer banking stocks. On Tuesday investors lost as much as Rs 2.2 lakh crores, while today's losses were yet to be ascertained.
Rating agency CRISIL cut the country's GDP forecast by a huge 0.5 per cent for 2015-16, citing poor monsoon forecast and its likely impact on the GDP.
Banking stocks were the hardest hit in trade with ICICI Bank and State Bank of India dropping sharply.
Forecast of poor monsoon dragged consumer goods stocks like ITC and Hindustan Unilever lower. Investors worries that lower rural demand could affect the performance of these companies.
ITC, which has the largest weightage on the Sensex fell a huge 5 per cent. Tata Group companies like Tata Motors and Tata Power also came crashing down.
The only stocks that managed to hold some ground were IT stocks like Infosys and TCS from the Nifty.
Carnage was also seen in midcap stocks which fell sharply. BEL, GMR and IFCI all fell by a huge 7 per cent in trade. Unitech fell a huge 36 per cent, while Rpower was down 8 per cent.
Meanwhile, markets across Asia ended the day with losses, while most of Europe was lower in trade.