Stories
Sensex Crashes: ‘Black Thursday’ Wipes Out 4,00,000 Crore, 1247-Point Drop in a Single Day
- •Sensex plummeted by 1,247.71 points to 73,580.54, and Nifty fell by 383.70 points to 23,063.10 on Thursday.
- •Rising US Treasury yields and crude oil prices exceeding $100 per barrel significantly impacted the Indian market.
- •Weak global cues, selling in bank and NBFC shares, and profit booking by investors were key reasons for the market decline.
- •Depreciation of the rupee against the US dollar and a surge in India VIX by over 21% fueled market volatility.
- •Bank and insurance company shares saw a major decline, while Bharat Dynamics' share rose due to a defense contract.
Key Questions Answered
The Sensex plummeted by 1,247.71 points due to a combination of global and domestic pressures, including US Treasury yields hitting highs not seen since 2007, crude oil prices climbing above $100 per barrel, weak global market cues, and profit booking by investors.
Proposed changes by IRDAI to commission rules—such as capping commissions, linking them to complexity, and allowing multi-year distribution—put heavy pressure on the financial sector. Bank and insurance shares dropped up to 2 percent, with companies like PB Fintech and Turtlemint falling as much as 23 percent.
Amidst widespread losses where 29 out of 30 Sensex shares declined, Bharat Dynamics' share managed to rise by 1.4 percent. This surge occurred after the Ministry of Defence signed an 811 crore rupee contract with the company for anti-airfield weapons.
