It is a bloodbath on Dalal Street with the NSE Nifty 50 slumping over 7% falling 1,782 points to an intra-day low of 21,481.80. The benchmark index breached the psychological level of 21,500. This is the biggest single-day fall since February 2022. The BSE Sensex meanwhile tanked 5,661 points or 7.4% to breach the psychological level of 71,000 and fell to a low of 70,808. For Nifty 50, 900 points more are left for Seller Cricuit, which is placed at 20,937.90.
Further, the Indian market’s volatility index India VIX soared over 50% to 31.71, the biggest single-day gain in nine years.
Also, the Adani Group stocks took a big hit. Not just that, PSU, Railway, and Defence stocks are down up to 18% and many counters hit the lower circuit.
Can markets see lower circuit? What do historical trends indicate
In 2004, Indian stock markets touched the lower circuit of 20% and fell 842 points, one of the steepest one-day falls of that time. At that time, BJP-led NDA had lost general elections to the UPA led by Congress. The UPA gained support from communist parties to form the government. This gave signals to the market that India’s economic reform momentum would end and growth would stall.
In 2009, markets saw two upper circuits as trading started after the election results were announced on Saturday, May 16. At that time, UPA emerged victorious won 262 seats and made government. Trading stopped for the whole day as the benchmarks hit the second upper circuit as soon as the trade resumed after a break of 2 hours. The BSE Sensex halted trading after reaching at the level of 14,272.62, up 2,099.21 points or 17.24%. While the NSE Nifty locked trading at 4,308.05, up 636.40 points or 17.33%.
