MUMBAI: The stock market selloff resumed on Thursday after a one-day break as a global rout forced the Sensex to give up all the gains made so far this year. The benchmark index is in the red on a year-to-date basis for the first time since April.
The Sensex and Nifty ended at six-month lows on Thursday following a sharp fall on Wall Street the previous night, triggered by worries over rising interest rates, anxiety about tech investments and trade conflict.
The Sensex plunged about 760 points, or 2.2 per cent, to close at 34001.15. The index had slipped below the 34,000-mark intraday but managed to end above the psychologically crucial level.
The Nifty ended about 225 points, or 2.2 per cent, down at 10234.65. Only nine out of the 50 Nifty stocks ended in the green.
On Wednesday night, Nasdaq Composite shed more than 4 per cent while the S&P 500 dropped 3.3 per cent led by a sharp selloff in technology shares and worries about rising interest rates, prompting US President Donald Trump to attack the Federal Reserve.
“I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy,” said Trump.
On Thursday, Nasdaq was in the green while S&P and Dow Jones had largely pared losses amid volatile trading, at the time of going to print.
The Sensex is now down 0.16 per cent for the year 2018, while the Nifty, already in the red for the calendar year, is down 2.8 per cent.
Investors Lose Rs 2.63 lakh crore
Although India fared better than other regional markets, the plunge wiped off Rs 2.63 lakh crore of investor wealth.
Since September, when the ongoing correction began, India’s market cap has been eroded by Rs 22.73 lakh crore.
The turbulence in global markets added to India’s existing woes of high oil