Why did the Sensex lose over a 1000 points on April 21?

The sharp crack in the Nifty and Sensex was on the back of the historic overnight plunge in US crude oil to below zero levels. The Nifty at 8,981 even as the rupee fell to 76.83/$. While logically India should benefit from lower oil prices, investors were concerned by the damage the Coronavirus had inflicted on the global economy. Oversupplied market and lack of demand had actually caused market players to dump oil in the futures market. On Tuesday 21 April, the financials were the worst hit. The Nifty Bank Index dropped 5.4% with Axis Bank Ltd, ICICI Bank Ltd and IndusInd Bank Ltd sliding sharply. ICICI Bank has taken deep cuts on its reported exposure of $100 million to Singapore based Leong group. Even Infosys corrected by over 3% due to weak quarterly results and for abstaining from guidance.