Sensex’s Biggest Falls: Election Results and COVID-19 Impact
The Sensex, India’s main stock index, opened with a sharp decline on Monday. The index has experienced significant drops on several occasions due to global and domestic economic events.
June 4, 2024: Election Results
On June 4, 2024, the Sensex saw one of its steepest falls, plunging to an intraday low of 70,234.43 points. The market opened at 76,285.78 and dropped 6,051.35 points (7.93%) before closing at 72,079.05. This was due to uncertainty after no political party gained a majority in the parliamentary elections.
March 2020: COVID-19 Pandemic
March 23, 2020
The Sensex fell to an intraday low of 25,880.83 points, opening at 27,608.80 and dropping 1,727.97 points (6.23%) before closing at 25,981.24. This was during the panic caused by the COVID-19 pandemic.
March 16, 2020
The index dropped to an intraday low of 31,276.30 points, opening at 33,103.24 and falling 1,826.94 points (5.51%) before closing at 31,390.07. The ongoing pandemic uncertainty caused severe market reactions.
March 13, 2020
The Sensex reached an intraday low of 29,388.97 points, opening at 31,214.13 and plunging 1,825.16 points (5.84%) before closing at 34,103.48. This was marked by global market sell-offs and recession fears.
March 12, 2020
The index dropped to an intraday low of 32,493.10 points, opening at 34,472.50 and falling 1,979.40 points (5.74%) before closing at 32,778.14. This decline was part of a series of losses due to the rapid spread of COVID-19 and its economic impact.
Doubts Revealed
Sensex -: Sensex is short for the Bombay Stock Exchange Sensitive Index. It is a measure of the 30 largest and most actively traded stocks on the Bombay Stock Exchange in India.
Stock index -: A stock index is a measurement of a section of the stock market. It is calculated from the prices of selected stocks, which represent a portion of the overall market.
Intraday falls -: Intraday falls refer to the drop in the stock market index within a single trading day. It shows how much the market has gone down from its highest point to its lowest point during that day.
Election uncertainty -: Election uncertainty means that people are unsure about the outcome of an election and how it will affect the economy. This can make investors nervous and cause the stock market to drop.
COVID-19 pandemic -: The COVID-19 pandemic is a global outbreak of a new coronavirus that started in 2019. It caused many countries to go into lockdown, affecting businesses and economies worldwide.
Market volatility -: Market volatility refers to the rapid and unpredictable changes in the stock market. It means that stock prices can go up and down very quickly.
