Sensex crashes over 1,400 points amid global meltdown
BSE benchmark Sensex on Monday crashed over 1,000 points to 26,359.53. Nifty also fell below 8,000-mark.business Updated: Aug 24, 2015 15:40 IST
The mayhem seen early Monday continued in intra-day trade as the BSE plunged 1,400 points or nearly 5% on global woes, its fourth biggest crash in history. The NSE also fell 353 points, mirroring the trends seen on the BSE.
The fall is widespread with large caps and mid caps taking the brunt of the fall; state-owned ONGC leading the fall. At 1:50pm, ONGC fell 8.8%, followed by GAIL which was trading down 8.2% and Tata Steel which is also off 7.5%.
“It is widespread panic which is mainly due to the global fears on the Chinese slowdown,” said Mayuresh Joshi, vice president at Angel Broking. “Nobody knows to what extent this will go but the sentiment is definitely affected. Margin calls across brokerages have been triggered and investors are selling across the board,” he added.
The 30-share Sensex, which contains large cap stocks, is down 4%, while the mid cap, which recently saw a lot of action from domestic funds, is down 5.2%, and the small cap index plunged 6.2%.
“It has been a while since we have seen a fall of this magnitude in our equity markets. This fall has largely been in reaction to the global markets carnage, the second effect of which has been a weaker rupee,” said Jayant Manglik, president, retail distribution at Religare Securities.
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.
The loss suffered by the 10 biggest companies in terms of market capitalisation was itself close to Rs 2 lakh crore.
Interestingly, eight out of the top-10 intra-day falls took place in the year 2008. Today's fall is biggest since January 21, 2008 when the Sensex crashed by 2,062.2 points.
The market was witnessing all-round heavy selling across realty, power, oil and gas, bankex, auto, metal, capital goods and IT sectors.
(With inputs from PTI)
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