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Monday Mayhem: Worst day in the history of Dalal Street
Mumbai, March 9, 2020
The Indian equity market witnessed a bloodbath on Monday with the BSE Sensex registering its biggest single-day fall in its history as it closed 1,941 points lower.
The decline can be attributed to the persistent concerns of the coronavirus epidemic severely impairing the global economy, coupled with the crash in the crude oil markets witnessed earlier in the day.
Investors lost around Rs 7 lakh crore during the day due to the rout, analysts said
The Sensex closed at 35,634.95, lower by 1,941.67 points or 5.17 per cent from the previous close of 37,576.62.
It had opened at the day's high of 36,950.20.
The benchmark index had plunged 2,467.44 points during the intra-day trade to touch the day's low of 35,109.18 points.
The Nifty50 on the National Stock Exchange (NSE) closed at 10,451.45, lower by 538 points or 4.90 per cent from its previous close.
Among the stocks, Reliance Industries (RIL) recorded its worst fall in around 10 years as it fell to a low of Rs 1,094.95 on the BSE during the intra-day trade.
It closed at Rs 1,113.15, lower by Rs 156.90 or 12.35 per cent from its previous close.
The Indian rupee also extended losses on Monday and depreciated to trade around above 74 per dollar, amid the carnage seen on the stock markets and the fall in oil prices.
The crash of the Indian stock markets was a sell-off across sectors, led by financial, metal, energy and IT stocks - weighed on the markets.
Further, crude oil prices also slumped around 30 per cent on Monday as Organization of Petroleum Exporting Countries (OPEC) failed to agree on an output cut deal, eventually causing Saudi Arabia to cut its prices as it is likely to increase its production. Saudi Arabia's stance has already raised concerns of an all-out price war.
Brent crude futures are currently trading around $36 per barrel.
On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to reports.
As per analysts, the oil market witnessed the worst price fall on Monday since the 1991 Gulf War.
Global stock markets also witnessed the bear run as Dow Jones and S&P500 plunged as they opened on Monday. The plunge was largely on the back of the 30 per cent overnight slump in crude oil prices, along with the persistent concerns over the impact of coronavirus on the global economy.
The Dow Jones Industrial Average fell at the opening bell on Monday, declining by more than 1,800 points. Minutes within its opening, the S&P500 plunged by 7 per cent, following which trade was halted for 15 minutes.