As it opened, the Sensex crashed 1,689 points or nearly 6 per cent today, wiping out in minutes, Rs 6 lakh crore in investors’ wealth on Dalal Street in market capitalisation of BSE listed firms.
Global markets have also recovered from their morning lows. S&P 500 futures, which had earlier sank as much as 5 per cent, recovered partially to trade 2.6 per cent in recent trade. Japan’s Nikkei had slumped 5.5 per cent.
The crash in Indian markets has also been attributed by analysts to short-term disruption in the financial system caused by the government’s abrupt announcement on Tuesday evening that 500 and 1,000 rupee notes will be discontinued.
