Mumbai: Stock market on Wednesday witnessed a deep plunge, tanking around 650 points to crash below the 24,000- level on global growth worries and sharp dip in oil prices before regaining some lost ground to settle 418 points lower at 24,062.04.
Consequently, the total market capitalisation of all the BSE-listed companies dipped by Rs 1,84,086 lakh crore to Rs 90,64,734 crore, putting pressure on the rupee that again breached the 68-mark against the dollar. On the other hand, gold glittered to trade at more than two-month high of Rs 26,690 per 10 grammes. Expectations of the market going downhill are likely to strengthen as the double whammy impact of oversupply in crude and the concerns in Chinese economy will dampen the investors’ preference towards equities, said Vinod Nair Head-Fundamental Research of Geojit BNP Paribas Financial Services.
The benchmark Sensex ended 1.71 per cent down at 24,062.04 as nervous investors sold off shares across all sectors, including realty, metal, PSU, power, banking and oil and gas. In the currency market, rupee breached the 68-mark for the first time in September 4, 2013. It partially recovered to end at Rs 67.95.
In a quarterly update to its World Economic Outlook, IMF had yesterday said the global economy will expand by 3.4 per cent in 2016, down from an earlier estimated 3.6 per cent in October. In Asia, Shanghai crashed over 1 per cent, Japan’s Nikkei fell 3.71 per cent, while Hong Kong’s Hang Seng index plunged 1.82 per cent.
European markets too were not different and slid to a 13-month on investor concern about global growth. Global crude oil also slumped to fresh 12-year lows to dip below USD 28 a barrel after the International Energy Agency warned the oil market could drown in oversupply. In the national capital, gold prices flared up by Rs 340 to trade at Rs 26,690 per 10 grams, a level last seen on November 3.
Globally, gold also rallied 0.69 per cent to trade at USD 1,095 an ounce in London in early trade as sell-off in equities added to its safe-haven appeal.