Benchmarks BSE Sensex and NSE Nifty 50 fell for a sixth straight session on Tuesday in line with broader Asia following a U.S. market rout. The Dow Jones Industrial Average, the benchmark US index, fell off a cliff on Monday, posting its biggest intraday point-decline ever in the history of American capital markets since 2011.
The BSE Sensex cracked below the 34,000-mark by plunging about 1,275 points or 3.6 per cent in opening trade today due to across-the-board losses after investor sentiment was hit by a sell-off in world markets.
Investors lose nearly Rs 5 lakh crore:
Following the downfall, investors lost around Rs 4.95 lakh crore amid sell-off in the broader market where the benchmark BSE Sensex tumbled 1,275 points or 3.6 per cent in opening trade.
Ever since the Budget was announced on February 1, BSE's market capitalisation has dipped by Rs 5.6 lakh crore.
Rupee plunges to 6-week low against US Dollar:
Meanwhile, the rupee plunged to its six-week low falling 29 paise to trade at 64.36 to the dollar. On Monday, the Indian currency closed flat at 64.07 against the US currency amid sharp losses in local equities.
Reasons why the market crashed?
It all began on Friday, when the US jobs Non-farm payrolls rose by a solid 200,000 jobs in January, against an anticipated 180,000 jobs. The US Labor Department data showed that this was the largest annual gain in more than 8-1/2 years. Average hourly earnings rose and boosted the year-on-year increase to 2.9 percent, the largest rise since June 2009.
Earlier on Monday, BSE Sensex closed lower by 309.59 points, or 0.88%, to 34,757.16, while the Nifty 50 fell 68.05 points, or 0.63%, to 10,692.55.
Globally, Asian shares fell sharply after Wall Street suffered its biggest decline since 2011 as investors' faith in factors underpinning a bull run in markets began to crumble.