Investors turned high-strung as the BSE Sensex plummeted over 650 points on Monday morning as an impact of the exit polls ahead of the Assembly Elections 2018 results. Apart from the election results weakening rupee, crude oil price rise and brewing trade tensions between America and China are cited as the reasons for the bloodbath in Dalal Street. The 30-share index sank 551.74 points, or 1.55 per cent, to 35,121.51 in the opening session and nosedived further to 650 points. The NSE Nifty nosedived below 10,600 as all other stocks were trading low.
The Sensex had recovered to 361.12 points, or 1.02 per cent, to close at 35,673.25 Friday and the Nifty has jumped to 92.55 points, or 0.87 per cent, to 10,693.70 last week. The massacre there was led by metal, real estate, banking and automobile stocking. Those who bore the maximum brunt include Reliance Industries, Adani Ports, PowerGrid, Coal India, Asian Paints, Kotak Bank, ONGC, Vedanta, Yes Bank, Bharti Airtel, Hero MotoCorp and ICICI Bank which had to bear massive loss as their stocks plummeted up to 4 per cent. According to market experts OPEC meeting and arrest of Huawei CEO has made the global investors to re-think their decisions and when coupled with the state election results they have led to a short-term volatility in the market.
Crude Oil prices shot up globally after members of the OPEC and 10 oil producing countries agreed to bring down their output by 1.2 million barrels to boost selling price. The decision might be scheduled to be brought into effect but has already caused a wildfire in the fuel market. The INR has plummeted by 59 paise now standing at 71.40 against a US Dollar.
At different places across Asia, markets plummeted, as for instance, Hong Kong’s Hang Seng was fell 1.41 per cent, Japan’s Nikkei dropped 2.18 per cent and Shanghai Composite Index dropped by 0.84 per cent in early trade.