Sensex bloodbath: In 24 hours, investors lost Rs 5.4 lakh crore

Stock markets fell off a cliff on Tuesday as panic in global markets triggered a sell-off at Dalal Street with Sensex crashing 1,003 points and Nifty erasing as much as 371.4 points in the opening trades.

Overnight, Dow Jones fell over 1,100 points, its biggest fall since six-and-half years after US wage data on Friday pointed to quickening inflation which may lead to higher rates by the US Federal Reserve.

Investors lost a whopping Rs 5,40,000 crore within a few seconds of the market opening.

Add WION as a Preferred Source

Indian markets are already under pressure after the government presented the budget that focused on populist measures ahead of general elections in 2019 and imposed a long-term capital gains tax on equities.

Asian stocks also plungedbecause of the record-breaking loss on Wall Street. Tokyo led the collapse throughout the region in early trade, diving more than five per cent. Hong Kong was down almost four per cent at one point,Sydney 3 per cent, Singapore 2.3 per cent, Seoul 3 per cent, Taipei 3.7 per cent, and Shanghai 2.1 per cent.

Media reports quoted market observers as saying that besides negative global cues, heavy selling pressure in banking, capital goods, auto and oil and gas stocks, pulled the stocks lower.