Indian stock markets witnessed one of its most significant crash in history with the benchmark BSE Sensex ending 1942 points lower at 35,635 while the NSE Nifty closed at 10,451, losing538 points on 9th March 2020.
This massive correction in the Indian stock markets which wiped out investor wealth to the tune of Rs 6.50 lakh crore can be attributed to the fear of escalation of Coronavirus and a crash in crude oil prices due to massive price cuts by Saudi Arabia.
Some additional factors affecting Indian stock markets
While low oil prices are good for the Indian economy as India is one of the largest importers of crude oil, there were some other reasons too, which caused the mayhem in Indian stock markets on Monday.
Some other reasons which added fuel to the fire include doubts about the stability of India's banking system post the Yes Bank crisis, massive selling by FII's in the last few sessions and panic in the global markets.
The ongoing volatility in the Indian stock markets has raised many questions in the minds of investors, such as:
- Indian stock markets are falling continuously. What should I do?
- How will it impact the Indian stock markets in the future?
- Is the Coronavirus dangerous, and is India ready to tackle it?
To get the answers to the above questions, below video by Manish Goel, Founder-Director and Jaspreet Singh Arora, Chief Investment Officer at Research & Ranking.
While the current situation in Indian stock markets may look bad, in reality, it is an opportunity to accumulate good stocks at discount prices as there has been a significant correction.
As rightly stated by writer and philosopher, Sun Tzu “ Victory comes from finding opportunities in problems”.
Don’t panic. Indian stock markets have seen worse
Indian stock markets have been through worse situations before such as dotcom bubble burst in 2000, 2008 financial crisis, NBFC crisis of 2018 etc. However, like Pheonix the celestial bird which rises from the ashes, Indian stock markets too have not only recovered quickly but outperformed.
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