• search

‘Black Tuesday' at stock market: Why share prices came crashing down?

By Vikas
Subscribe to Oneindia News
For Quick Alerts
Subscribe Now
For Quick Alerts
ALLOW NOTIFICATIONS
For Daily Alerts

    The effects of meltdown in stock markets across the globe could be clearly seen in Indian markets on Tuesday. Market sentiment took a beating following sharp losses in other Asian markets which was driven by a record-loss on Wall Street.

    Stock market crash

    Investors saw a wealth erosion of more than Rs 2.72 lakh crore after the BSE Sensex plunged by 561 points to close at a one-month low of 34,195.94. The broader NSE Nifty 50 too shed 168.30 points to finish at 10,498.25.

    Indian markets began reeling after the government presented the budget that focused on populist measures ahead of general elections in 2019.

    The start on Monday was distinctly weak as the BSE Sensex crashed by about 1,275 points to sink below the key 34,000-mark ,while the NSE Nifty plunged 390 points within minutes of opening. However, value-buying emerged at several counters during the late afternoon session. The Sensex finally ended at 34,195.94, down 561.22 points, or 1.61%, said a PTI report.

    Although several factors have led the markets to crash, the following are the main reasons:

    • Long-term capital gains (LTCG) tax on equities announced in the Budget may have caused investors to pull money out of the market.
    • Strong selling pressure dragged down the Sensex and Nifty components.
    • The reasons behind selling pressure could be several, including apprehension ahead of RBI monetary policy meeting. The other reason could be Budget proposals to tax equities.
    • The weakness in the US markets dragged the Sensex, which fell 561 points in trade ending the day at 34,195 points.
    • Most analysts see the fall as a part of a long overdue correction, which has not happened for the last many months. The direction of the market has been largely one-sided with the markets only moving higher. The present drop may leave investor wealth sharpy eroded.
    • The Japanese Nikkei was down with a drop of more than 4.73 percent, while the Korean Kospi dived 1.54 percent while the Hong Kong's Hang Sang was down 5 per cent with a more than 1,000 points fall.

    OneIndia News

    For Breaking News from Oneindia
    Get instant news updates throughout the day.

    X
    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more