Reacting to a global sell-off across debt markets that was triggered by a surge in the US trade deficit and concerns over Greece’s debt default, the Indian markets — already reeling under the impact of muted earnings growth — plunged to a four-month low on Wednesday.
The 722 point, or 2.6 per cent, fall in the BSE Sensex on Wednesday was the fifth trading session in just the first four months of this year when the benchmark index shed over 500 points during a day, making the current year the worst after 2008 — the year global recession hit markets around the world. The Sensex had fallen by over 500 points on 28 occasions in 2008.
Wednesday’s fall was the second biggest for this calendar as it had fallen 854 points on January 6 following concerns over global growth, as oil prices slipped and there were concerns over Greece’s ability to remain a part of the Eurozone.
The decline in Sensex, which began with concerns over tepid earnings growth for the fourth quarter, has seen a cumulatively slide of 2,327 points or 8 per cent over the last 15 trading sessions.