Investors' wealth worth Rs 6.84 lakh crore was wiped out in worst day for stock markets since August 2015 on Monday, data from BSE showed. The stock markets crashed by 5 per cent on the back of rampaging coronavirus and plunging crude oil prices. The S&P BSE Sensex crashed as much as 2,467 points and Nifty 50 index cracked as much as 695 points to fall below 10,300 mark before closing. The Sensex ended the day at 35,635, weaker by 1,942 points or 5.1 per cent and the Nifty ended at 10,451, down 538 points or 4.9 per cent.
In the last two days of market meltdown investors' wealth worth Rs 10 lakh crore has been wiped out, BSE data showed.
There was turmoil in the oil markets after Saudi Arabia started a price war with Russia by slashing its selling prices and pledging to unleash pent-up supply onto the market. Brent crude futures fell by as much as $14.25, or 31.5 per cent, to $31.02 a barrel. That was the biggest percentage drop since January 17, 1991, at the start of the first Gulf War and the lowest since February 12, 2016.
Equity markets across Asia sank, with MSCI's broadest index of Asia-Pacific shares outside Japan plummeting 3.0 per cent to a five-month low, Japan's Nikkei falling 4.7 per cent and Australia's commodity-heavy market down 5 per cent.
European indices, including the CAC, DAX and FTSE, had cuts ranging from 4-8 per cent each in early trades. The US market futures are also staring at huge losses at opening bell, with the Wall Street E-Mini futures plunging 4.6 per cent. Crude oil prices nosedived 31.5 per cent to $31.02 a barrel in their biggest percentage slump since the start of the first Gulf War.
Investors around the world are looking at central banks to announce measures to shield world economy from the virus. The European Central Bank meets on Thursday, but the jury is still out on of and how it will choose to respond to the spreading contagion in the market.
All the BSE sectoral indices ended in the red, with oil marketing companies and banking stocks being among the worst affected. Reliance Industries was the biggest contributor to the fall in the benchmark indices.