MUMBAI: Dalal Street investors lost Rs14 lakh crore in a single session on Monday as benchmark indices crashed amid a global market meltdown triggered by recession fears.
The 30-share BSE Sensex plunged 2,226.79 points or 2.95 per cent to close at 73,137.90. Intra-day, it slumped as much as 3,939.68 points or 5.22 per cent to 71,425.01.
Reflecting the steep fall in equities, the market capitalisation of BSE-listed companies declined by Rs14,09,225.71 crore to Rs3,89,25,660.75 crore ($4.54 trillion). At one point during the morning trade, the total wealth erosion from the market meltdown had touched Rs20.16 lakh crore.
All Sensex stocks, barring Hindustan Unilever, ended in the red. Tata Steel was the biggest laggard with a 7.73 per cent drop, followed by Larsen & Toubro, which fell 5.78 per cent. Other major losers included Tata Motors, Kotak Mahindra Bank, Mahindra & Mahindra, Infosys, Axis Bank, ICICI Bank, HCL Technologies and HDFC Bank.
Asian markets mirrored the slump, with Hong Kong’s Hang Seng tumbling over 13 per cent, Tokyo’s Nikkei 225 plunging nearly 8 per cent, Shanghai’s SSE Composite falling over 7 per cent, and South Korea’s Kospi sliding more than 5 per cent. European indices also came under pressure with declines of over 4 per cent.
US markets
US markets closed sharply lower on Friday, with the S&P 500 dropping 5.97 per cent, Nasdaq falling 5.82 per cent, and Dow Jones retreating 5.50 per cent.
“Benchmark indices plunged on Monday as global markets crashed amid the escalating trade war. Markets opened with steep losses, with Nifty-50 falling below 22,000 as Asian indices recorded sharp losses and US futures signalled another deep correction,” said Satish Chandra Aluri, Analyst, Lemonn Markets Desk.
“Recession was not the base case until last week, but it is quickly becoming so, as markets price in recession risks and anticipate a dramatic shift in the global trade and economic order,” he added.
Global oil benchmark Brent crude fell 2.30 per cent to $64.11 a barrel.
The BSE smallcap index sank 4.13 per cent, while the midcap gauge dropped 3.46 per cent.
“After US markets plunged on Friday, it was writing on the wall for global equities which fell like a pack of cards on fears that Trump’s tariff policies may spark a recession and fuel inflation in the US,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
“Commodities like crude oil and metals are already seeing a downward trend, indicating a potential demand slowdown if the trend continues,” he noted.
All BSE sectoral indices ended in deep red. Metals dropped 6.22 per cent, realty 5.69 per cent, commodities 4.68 per cent, industrials 4.57 per cent, consumer discretionary 3.79 per cent, auto 3.77 per cent, bankex 3.37 per cent, IT 2.92 per cent, teck 2.85 per cent, and BSE Focused IT 2.63 per cent.
On the BSE, 3,515 stocks declined, 570 advanced, and 140 remained unchanged. Notably, 775 stocks hit their 52-week lows while 59 touched 52-week highs.
