Indian Stock Market Crash: Sensex and Nifty Plummet Amid Budget Uncertainty
BSE Sensex and Nifty50 Underperform Despite Global Trade Strength
India's benchmark equity indices, the BSE Sensex and Nifty50, experienced a significant decline in trade on Monday. The fall was largely attributed to uncertainty among investors following the announcement of the Indian government's budget for the fiscal year 2023-24.
The Sensex closed the trading day 2,223 points or 2.74% lower at 78,759.40, while the Nifty50 ended down 662 points or 3.62% at 17,671.15. The decline in Indian stock markets stood out against the broader global trade setup, with the S&P 500 having hit a record high in recent trading sessions.
Asian Markets Follow Suit, Nikkei and Topix Drop Sharply
The negative sentiment in Indian markets also impacted Asian markets. Japan's Nikkei 225 and Topix indices fell as much as 7% during Monday's trading, mirroring the sell-off witnessed in India.
Adani Stocks Continue Downward Spiral
The decline in Indian stock markets was further fueled by the continued downward trend in Adani Group stocks. The conglomerate's shares have been under pressure since the release of a report by Hindenburg Research in January 2023, which raised concerns about the group's accounting practices and excessive debt.
Despite the recent rebound in some Adani stocks, the overall sentiment towards the group remains negative. This has contributed to the broader weakness in Indian equity markets.
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