Indian investors lost Rs 20 lakh cr in stocks this year

NEW DELHI, Dec 28 (Business Standard): In a departure from big gains in the past two years, investors saw around Rs 20 lakh crore of their wealth eroded as Indian equities tanked in 2011 because of inflation, high interest rates and the uncertain global growth environment accentuated by the euro zone debt crisis. In addition, the rupee fell to historic lows against the US dollar, hitting the country's import bill. The bellwether indices of the Bombay Stock Exchange as well as the National Stock Exchange fell by over 26 per cent during the course of the year, touching new lows. The 30-scrip BSE Sensex was down by 5,334.01 points, or over 26 per cent, at 15.175.08 on December 20, against last year's close of 20,509.09. Similarly, the 50-share Nifty witnessed a hefty fall of 1,590.30 points, or 25.92 per cent, to 4,544.20 on December 20 from last year's close. There has been some recovery since then, with the Sensex closing at 15,873.95 and the Nifty at 4,750.50 Tuesday, but market experts say investors remain cautious on India.