Phew!!! Sensex crashed over 1,000 points 14 times in 2020

Phew!!! Sensex crashed over 1,000 points 14 times in 2020

NEW DELHI: Calendar 2020 was a year of rollercoaster ride for Dalal Street, with many sharp plunges and rapid climbs that lifted the benchmarks to new record highs.

Nifty scaled Mount 14,000 on Thursday, the last session of the year.

Such was the fear of the pandemic on investor minds that Sensex tumble over 1,000 points on 14 different occasions, in four of which, the 30-pack had actually plunged in excess of 2,000 points.

Out of 250-odd sessions the year had, the index fell over 500 points on 35 occasions, while the rebound from the March lows helped it close in the black in 150-odd sessions.

The biggest and the most infamous fall for the Sensex was on March 23, when it nosedived 3,934 points, or 12.71 per cent, in a single day. That day, the index hit the lower circuit limit for the first time in its history.

The fall came a day after the government announced a Janta Curfew on March 22 and Prime Minister Narendra Modi in a series of tweets suggested the beginning of a long battle against Covid-19. Later on March 24, Modi declared a nationwide lockdown for 21 days.

In a prequel to the March 23 fall, the market saw the second biggest fall of the year on March 12, when Sensex tumbled 8.03 per cent, or 2,919 points. Stocks plunged after the WHO described the Covid outbreak as ‘global pandemic’. That very day, India confirmed its first Covid death in Karnataka.

On March 16, the 30-pack index slid 6.05 per cent, or 2,713 points as stocks fell following an emergency rate cut by the US Federal Reserve and similar pledges by central banks globally raised fears that the Covid impact on the economies would be worse than what was initially thought.

On May 12, stocks wiped out over Rs 6 lakh crore worth of investor wealth, as BSE Sensex lost 2,002 points, or 5.17 per cent, for the day. That drop came amid concerns over a US-China spat on the origin of the coronavirus.

The 1,941-point, or 5.40 per cent, fall in the Sensex on March 9 came as a price war between major oil producers Saudi Arabia and Russia sent crude oil prices tumbling 33 per cent in a single day.

The BSE barometer fell 1,709 points (5.10 per cent) on February 28. Last week on December 21, Sensex took a 1,407-point hit on renewed concerns about the virus amid a fresh Covid lockdown in the UK.

Those concerns proved shortlived and the market regained momentum on the Brexit deal and after the US government cleared the pandemic package.

March 30 (down 1,375 points), April 1 (down 1,203 points), September 24 (down 1,115 points), May 18 (down 1,069 points), October 15 (1,066 points) and April 21 (1,011 points) were some of the other days in 2020 when Sensex tanked in excess of 1,000 points.

Yet, the index is ending 2020 about 15 per cent higher for the year, and up 85 per cent from its March 23 low of 25,638.

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