India’s NSE Nifty 50 slipped below the 10,000-mark for the first time since Oct of last year as the nation’s stocks joined a global selloff triggered by prospects of a trade war.
The index has now declined over 10-percent from its Jan. 29 record closing high of 11,130. The correction was also heightened on the prospects of the ruling party in a spate of state polls this year and general elections in 2019.
The last time the Sensex had a retreat of similar magnitude from peak to trough was in late 2016 after Prime Minister Narendra Modi junked high-value banknotes in a move to tackle corruption.
Index heavyweight banks were the worst hit after a fraud at country’s second-largest state-owned bank soured sentiment further for the sector already reeling from a bad loan crisis.