Stock markets crash nearly 3pc amid global equity rout, investors lose Rs 15 lakh cr in single day

The stock markets experienced a nearly 3% crash on Monday due to widespread selling in banking, IT, metal, and oil & gas shares, following a global equity rout. This resulted in wiping out more than Rs 15 lakh crore of investor money in a single day. The 30-share BSE Sensex fell by 2,222.55 points or 2.74% to settle at over a month’s low of 78,759.40, marking its worst single-day retreat since June 4, 2024. During the day, the index tanked 2,686.09 points or 3.31% to 78,295.86. The NSE Nifty slumped by 662.10 points or 2.68% to settle at more than a month’s low of 24,055.60. During the day, it tumbled 824 points or 3.33% to 23,893.70.

Nifty also saw its worst single-day fall since June 4, 2024, when markets crashed more than 5% due to general election results. The broader market was also affected, with the BSE small-cap gauge dropping by 4.21% and the mid-cap index plummeting by 3.60%. Investors lost more than Rs 15 lakh crore in the market crash, as the total valuation of BSE-listed companies dropped to Rs 441.84 lakh crore on Monday. Investors lost Rs 4.46 lakh crore on Friday, taking the total losses in two days to more than Rs 19 lakh crore.

The over 12% plunge in Japan’s Nikkei and geopolitical tensions in the Middle East affected market sentiment, leading to sharp declines in Asian markets such as Seoul, Tokyo, Shanghai, and Hong Kong. Japan’s benchmark stock index plunged by 12.4% on Monday, continuing a global market rout set off by concerns that the US economy could be headed for recession. European markets were also trading with deep cuts, and the US markets ended significantly lower on Friday.

From the Sensex pack, Tata Motors slumped by over 7%, and other big laggards included Adani Ports, Tata Steel, SBI, Power Grid, JSW Steel, and Maruti. Foreign institutional investors (FII) offloaded equities worth Rs 3,310 crore on Friday, according to exchange data.

All indices ended lower, with the services index nosediving by 4.56%, utilities tanking by 4.30%, realty by 4.25%, capital goods by 4.13%, industrials by 4.08%, power by 3.91%, oil & gas by 3.88%, and commodities by 3.82%. Global oil benchmark Brent crude declined by 1.93% to USD 75.33 a barrel.