New Delhi: For the stock markets, the Financial Year 2007-08 started in a dismal way with the Bombay Stock Exchange's benchmark Sensex crashing down by 616.73 points on Monday.
And for investors, there is no worse way to start the new fiscal than to see over Rs 1,50,000 crore go down the drain in trading that lasted less than six hours.
The cumulative market value of all the companies listed on domestic bourses is estimated to have dropped by a whopping Rs 1,50,000 crore on Monday when the Bombay Stock Exchange's 30-share benchmark Sensex lost 4.7 per cent to end at 12,455.37.
More than half of the total loss was shouldered by investors in the country's 30 biggest blue chip companies, which saw an erosion of over Rs 80,000 crore in market value.
The state run oil exploration major ONGC was the biggest loser in value term with a plunge of over Rs 9,500 crore in its market cap, followed by over Rs 5,000 crore loss for companies like Bharti Airtel and Reliance Industries.
IT major Wipro's market cap reduced by over Rs 4,000 crore while banking scrips like ICICI Bank, which suffered the brunt of the melting markets, lost close to Rs 4,000 crore and HDFC dropped by over Rs 1,000 crore.
Car market leader Maruti Udyog plunged over 8 per cent taking its market cap down by about Rs 1,500 crore.
Banking stocks felt the heat as the RBI's move was expected to suck out Rs 15,500 crore from the system.
ICICI Bank's shares dropped 5.7 per cent, State Bank of India, the biggest lender, fell 6.3 per cent and HDFC Bank by 5 per cent.
Market experts estimate that the fair value for the 30-share BSE Sensex was around 11,500, but they do not deny that the index could fall lower than this as the fundamental picture appears to be less rosy than before.
As quoted by PTI, Morgan Stanley, in a research note to its clients, has said: "As the market tries to forge ahead, we think it is more likely to encounter snakes that gulp it down to lower levels than arrows or ladders that propel it to higher levels".
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