Mumbai: On Monday, the Indian share market faced a massive crash, with the BSE Sensex dropping by around 2,200 points. During intraday trading, Sensex touched a low of 39,00 points. This sharp fall was compared to the infamous "Black Monday," raising concerns among investors. The Nifty also witnessed a steep decline, closing down by 3.24 per cent at 22,161.10 points.
The decline was largely due to heavy profit booking after years of strong market growth. Additionally, fears of a recession in the U.S. added to the market’s stress. The Indian Rupee also recorded a significant fall against the US Dollar, marking its worst decline in the past three months.
Modi Government and SEBI Take Quick Action
Following the market crash, the Modi government sprang into action. According to reports, the government is monitoring the situation very closely. Senior officials from the finance ministry stated that the government is watching the market to ensure stability. They are in touch with SEBI (Securities and Exchange Board of India) to keep the situation under control.
Sources revealed that the government is not rushing into any major decisions. They believe it is important to let short-term investors learn from the current scenario. The focus is on evaluating the long-term performance of the Indian economy, which continues to show strong fundamentals compared to other major economies.
Officials emphasised that this situation is not a major concern at the moment. Instead, global investors are encouraged to consider India’s economic growth potential for the medium to long term.
Big Decisions Likely to Follow
SEBI is ready to take strong steps if needed to prevent any illegal activities or market manipulation. The sharp fall in Sensex and Nifty is seen as a result of global economic pressures, especially the fear of a recession in the United States.
Despite the current decline, India’s economic outlook remains positive. The government’s quick response aims to restore investor confidence and ensure that the market remains stable in the coming days.
