The turmoil in the Indian stockmarket saw investors losing £96 billion in three days with the rout continuing amid sell-off in world markets. The BSE benchmark Sensex slumped 1,274.35 points to hit the day's low at 33,482.81 in Tuesday's early trade. Post the Union Budget on February 1, the 30-share index has plummeted by 2,164.11 points. Led by a continuous sell-off, the market capitalisation of BSE-listed companies went down by £96.09 billion to £143.39 billion in three days.
Commenting on the markets' poor show, Finance and Revenue Secretary Hasmukh Adhia said that the government would look into what it can do after a slump in local market reflecting global sell off. When asked if the government will scrap or review the long term capital gains (LTCG) tax which was introduced last week in the federal budget, Adhia said the local markets are mimicking global weakness, "but the government will look into what it can do".
The Sensex slumped 309.59 points, or 0.88 per cent, to end at 34,757.16 on Monday. The index had crashed 839.91 points, or 2.34 per cent, on Friday.
"The crash in the mother market - the Dow plunging by 2,200 points in two days has unnerved equity markets globally. The sell-off in the US has led to a global sell-off. Indian market is in tune with global markets in this downturn," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.