The Indian stock market on Monday registered its biggest fall in absolute terms on Sensex and Nifty. With investors losing more than Rs 7 lakh crore in a single trading session, the market sentiment is likely to remain subdued over the coming days. The S&P Bombay Stock Exchange (BSE), National Stock Exchange (NSE) including NiftyBank witnessed their biggest one-day loss in absolute terms. In past, the worst single day performance was recorded when sensex fell off the cliff 1,624 points to close at 25,741 on August 24, 2015 followed by the 1,448-point dive which was recorded on February 28 earlier this year.
Moreover, the Volatility Index also jumped 15 percent to end at a 6-year closing high. The cumulative market capitalization on BSE tanked to Rs 137.46 lakh crore today vis-a-vis Friday's close of Rs 144.31 lakh crore amid an intensifying rout in global stocks. At the close of the trading session, Sensex and Nifty declined 1,941 points and 538 points respectively. Notably, at one point in time, the BSE index slipped 2,400 points to hit a low of 35,109 during the day.
Reasons behind the fall
As per a report in the Times of India, the Coronavirus outbreak has already infected more than 1,07,000 people globally, claiming more than 3,300 lives and disrupting business supply chains. Although there has been slow down in new cases it is yet to be cured completely. The outbreak has witnessed a global sell-off due to slowed economic activities on a global scale. In fact, the outbreak has already wiped 9 percent off Nifty in the past two weeks.
Oil prices Cut
The crude oil prices fell around 30 percent amid Saudi Arabia cut down its official selling prices and devise a plan to a dramatic increase in crude production next month. The cut has come at a time when the global economy is already struggling due to the outbreak of coronavirus.
Yes Bank Crisis
The investors' sentiment also took a hit after Enforcement Directorate (ED), arrested Yes Bank founder Rana Kapoor on Sunday after hours of grilling and searches at his and his daughters' residences across cities in the country.