Sensex dips 2,000 points
Yesterday, the BSE Sensex was trading 2009.20 points, or 5.375 per cent, lower at 35,567.42 Nifty plunged 547 points, or 5.11 per cent, to 10,431. INR 6.35 lakh crore were wiped off from the total market capitalisation of BSE-listed companies as it fell to INR 137.95 lakh crore. This dip was the repercussion of a 31% dip in crude oil prices within a couple of hours, the worst since Gulf war in 1991. The YES Bank crisis further fanned the fears of investors.
Albeit a sharp fall in crude oil prices could be a blessing in disguise for India, which runs a trade deficit and has high inflation, a steep fall in crude prices also paints a weak outlook for the world economy. “In case of oil price correction, India is winner. But whenever there is a global economic slowdown, India has never been a winner. If oil is going down partly because demand is very weak, that does not help any economy and India is no exception,” explicated Arvind Sanger, Geosphere Capital Management.