After a week of heavy losses and the closing of the Reliance Power IPO, the investor community was expecting things to be back on track today. Instead it turned out to be a Black Monday in the history of Indian Markets. The BSE Sensex lost 1408 points in today's trade to close at 17605, down a whooping 7.41 per cent. This is the biggest ever point fall for the Sensex. The stock of the nation, NIFTY 50 was down close to 500 points, down 8.71 per cent. The heavy fall sent a panic wave among the investors and they continued to dump their stocks.
Among the broader indices - BSE Midcap was the worst hit as it lost 11.38 per cent. Not far behind was the BSE Small Cap index which shed 10.27 per cent. Sectorally, the BSE Metal index lost close to 12 per cent today. Many other indices like Oil and Gas, Realty, Power, and PSU recorded double digit percentage losses in today's trade.
During the day BSE was shut down for a brief period of time. However it resumed trading soon. Stocks like Essar Oil, Oswal Chemical, Wire and Wireless and Nagarjuna Fertilizers lost over 30 per cent in today's trade. It is believed that investors wealth has been reduced by around Rs 4,90,000 crore today.
Much of this is believed to be caused by the weakness in stock markets around the globe on account of fears of US Recession. In Asia, India was the worst performing market today as it lost 7.41%. Amongst other Asian markets Japan's Nikkei fell by 3.86% and Hong Kong's Hang Seng was down 5.49% The European Markets too opened lower and are trading weakly.