Mumbai, Aug 24: Stock market witnessed a bloodbath today with the Sensex crashing by 1,624.51 points or 5.94 per cent to 25,741.56 as steep falls in Chinese equities sparked widespread unrest in global markets. Similarly, the 50-share NSE index Nifty plunged 490.95 points or 5.92 per cent to 7,809, also its biggest fall since January 7 2009. It hit as low as 7,769.40 points, its lowest since October 17, 2014. This is the biggest crash in seven-and-a-half years and the third biggest-ever for the BSE benchmark index.All broader and sectoral indices had been battered badly and ended deep in the red after traders were in a sell-off mode.
Realty index plunged the most by 10.93 per cent, followed by oil & gas 9.2 per cent, infrastructure 8.67 per cent and power 8.12 per cent.
The overall investors’ wealth, measured in terms of total valuation of all listed stocks, was also down nearly Rs. 3.5 lakh crore as it crashed below Rs. 100-lakh crore mark and stood at Rs. 97,64,237 crore in early afternoon trade.
Markets were in a sell-off mode following fears of a slowdown in the Chinese economy following expectations of tapering demand for goods and services worldwide going forward.
A report by SMC Investments and Advisors said: “Asian stocks fell after Wall Street suffered another bruising blow as deepening concerns over China’s economy continued to unnerve global investors. Brent and US crude oil futures hit their fresh 6-1/2-year lows today as investors continue to worry about weak demand as China’s economy slows amid a global supply surplus.”
Alarm bells rang across world markets on Monday as a 9 per cent dive in Chinese shares and a sharp drop in the dollar and major commodities panicked investors.
European stocks opened more than 3 per cent in the red after their Asian counterparts slumped to 3-year lows as a three month-long rout in Chinese equities threatened to get out of hand. Asian stocks dived to 3-year lows on Monday as a rout in Chinese equities gathered pace, hastening an exodus from riskier assets as fears of a China-led global economic slowdown roiled world markets. The rupee plunged by 66 paise to fall below the Rs. 66 level against the dollar for the first time in almost two years in the opening trade today on sustained capital outflows even as the US currency weakened overseas.