Today, India’s benchmark index plunged down nearly 1250.38 points stopping at 33506.78 points. Nifty declined nearly 350 points before stopping at 10343. It is said this is the biggest fall since August 2015, as it fell down nearly 3.5% today. Indian markets are already under pressure after the Government presented a budget focusing on populist measures ahead of the 2019 elections. They also imposed long term capital gains tax on equities.
Today at 9:28 A.M., the stocks were trading at 33803.95 after it fell down 953.21 points (2.74%) while Nifty fell 2.7% ending at 10374.25 points. The Chief Investment Officer of Banque Nationale de Paris (BNP) Paribas Mutual Fund Ritesh Jain said, “Indian markets are mirroring the freefall in world equities. The fear of inflation firming up, and hardening bond yields led to increase in the U.S. Volatility Index (VIX) and send the U.S. market spiralling down, with momentum strategies adding to the domino effect.” He further added, “We have turned completely from greed to fear and hopefully, the fear should settle down without any systemic damage It’s a wait and watch situation until then.”
More than Rs. 12.50 trillion investor wealth got wiped off in the last six trading sessions. It is said to be the longest losing streak in 4 months of tracking Global sell off amid strong U.S. jobs data. According to Bombay Stock Exchange (BSE) data today, the market capitalisation of all listed BSE companies stood at Rs. 155 lakh crore. During the 6 days losing streak, the benchmark index declined nearly 7% (2529 points) while Nifty index fell down over 6.3% (765 points.)
