The Indian stock market witnessed a major crash today, with investors facing significant losses as various indices plummeted. The State Bank of India (SBI) investors alone lost a staggering Rs 1 lakh crore as the PSU bank index tanked by 13%. The Sensex plunged over 4,900 points, while the rupee weakened against the US dollar, quoting at 83.52 per dollar.
Amid the market turmoil, Paytm, Inox, and 736 other BSE-listed stocks hit the lower circuit, causing panic among investors. Additionally, Punjab National Bank (PNB) approved diluting a 10% stake in Canara HSBC Life Insurance via an IPO.
The market plunge was attributed to uncertainty surrounding the performance of the Narendra Modi-led alliance, with the top 10 stock losers in Asia all hailing from India. The fear index, India VIX, saw its highest single-day gain in nine years, surging nearly 40%.
Experts emphasized the importance of long-term investing, highlighting the potential for significant returns over time. Despite the market downturn, certain sectors like FMCG and healthcare stocks showed resilience, gaining up to 4%.
The market capitalization of BSE-listed companies fell by Rs 45.56 lakh crore, with investors’ wealth taking a hit of Rs 36 lakh crore. The broader markets, including medium, small, and microcap indices, were deeply in the red, reflecting the widespread impact of the market crash.
As the market continues to reel from the effects of the crash, analysts are closely monitoring the situation for any signs of recovery or further decline. The election results, uncertainty, and global market trends are expected to influence the market’s trajectory in the coming days.
