India’s equity markets ended Monday’s session losing ₹8.9 trillion as investors panicked over rising crude oil prices and renewed pressure on the Indian Rupee (INR/₹).
Equities took an additional blow after Prime Minister Narendra Modi asked Indians to stop buying gold for one year.
The Bombay Stock Exchange (BSE) Sensex closed deep in the red after a volatile day of trade, while the NSE Nifty 50 slipped below an important psychological level as sentiment weakened over the weekend.
Mid-session trade looked something like this:
The BSE Sensex plunged more than 1,400 points, or 1.9 percent, to settle at 73,198, while the NSE Nifty 50 slipped below the 22,150 mark.
The sharp decline triggered a massive erosion in investor wealth, as the market capitalisation of BSE-listed companies shrank by nearly ₹8.9 trillion.
Following the rout, the overall valuation of listed firms dropped to around ₹3,842.2 trillion.
Persistent selling pressure was seen across India’s banking heavyweights, oil marketing companies, auto manufacturers, and airline stocks while IT stocks also softened in line with weak global tech sentiment.
Defense stocks offered limited support but failed to offset the market decline.
Indian state media reported that the selloff was driven by a combination of global and domestic factors, including rising crude oil prices, renewed pressure on the Indian rupee, and poor sentiment after Pakistan’s Marka-e-haq celebrations.
The surge in oil prices led to big declines in India’s listed consumption-linked sectors.
Besides the 10 May remembrance day, the second immediate trigger for weakness in Sensex was the interpretation of recent policy changes, including tensions due to the US-Iran war and surging crude oil prices.
These factors together amplified concerns around India’s external balances, fuel import costs, and overall global outlook.
Overall, today’s session reflected heightened volatility and risk aversion in Indian equities.
what has marka whatever got to do here, simply creating sensations to fail.
India’s balkanisation is in the offing just like formar Yogoslavia. Let’s see 10-15 states emerging within India in couple of years