Stockmarket crash

panic-stockmarket

The election results in May that brought the Congress-led Government to power claimed an unsuspecting victim. Panic-stricken investors made the Indian stockmarkets crash on May 17.

The BSE witnessed a virtual bloodbath on the day and ended with a largest ever fall of 564 points even as its authorities suspended trading twice during the day to mitigate the damage. The mayhem wiped out nearly Rs 2,00,000 crore in market capitalisation. The reason was not only the defeat of the NDA, which was being considered pro-market, but the inclusion of the Left in the coalition that supported the UPA Government. Investors and punters speculated that the Left would force the Government to go back on "pro-reformist and anti-people" measures announced by the NDA.

But such was not the case, as evidenced by the all-time highs that the Sensex is making everyday now.

- Girish Chadha