Investors' wealth eroded by a massive Rs 9.19 lakh crore on Tuesday as markets came under heavy sell-off with the BSE benchmark index Sensex falling 930.55 points.

Extending its previous day's decline, the BSE Sensex plummeted 930.55 points or 1.15 per cent to settle at 80,220.72. During the day, it tanked 1,001.74 points or 1.23 per cent to 80,149.53.

The market capitalisation of BSE-listed firms eroded by Rs 9,19,374.52 crore to Rs 4,44,45,649.22 crore (USD 5.29 trillion).

"There has been no respite from FIIs selling in local equities in the current month so far, which has been creating uncertainty among domestic investors. Also, foreign investors are fleeing Indian equities to invest in relatively cheaper locations such as China, especially after the stimulus announcement by its government to boost its slowing economy.

"Along with sectoral stocks, mid and smallcap stocks too bore the brunt as persistent buying had led to valuations in several stocks getting expensive and hence the breather," Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said.

From the 30 Sensex pack, Mahindra & Mahindra, State Bank of India, Power Grid, Tata Steel, IndusInd Bank, Tata Motors, Larsen & Toubro, NTPC, Bajaj Finance and Reliance were among the biggest laggards.

In contrast, ICICI Bank, Nestle and Infosys were the gainers from the pack.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,261.83 crore on Monday, according to exchange data.

"Rising US bond yield amid expectation of a modest rate cut by US Fed led to weakness in global markets and outflow of funds from emerging markets like India. Following its peers, Indian equities too witnessed a decline. Q2 earnings are also showing signs of moderation which dented the sentiments," Siddhartha Khemka, Head - Research, Wealth Management at Motilal Oswal Financial Services Ltd, said.

The BSE smallcap gauge tanked 3.81 per cent and the midcap index slumped 2.52 per cent.

All sectoral indices ended lower. BSE Industrials tumbled 3.51 per cent, realty (3.29 per cent), metal (2.99 per cent), commodities (2.80 per cent), power (2.64 per cent), utilities (2.64 per cent), telecommunication (2.63 per cent) and consumer discretionary (2.54 per cent).

A total of 3,428 stocks declined while 559 advanced and 71 remained unchanged on the BSE.

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