Sensex & Nifty has Fallen Sharply

The Sensex and Nifty has fallen sharply on the back of selling witnessed across all Asian markets.

Domestic stock markets, closed sharply lower on Thursday, as caution prevailed ahead of the policy meeting of the Reserve Bank of India (RBI) due Friday, amid sell-off witnessed across sectors and weak global cues.

The S&P BSE Sensex slumped 806.47 points, or 2.24 per cent, to end at 35,169.16. The NSE Nifty50 index tanked 259.00 points or 2.39 per cent to settle at 10,599.25. All the sectoral indices were trading in the negative terrain.

Twenty three out of 30 Sensex stocks finished the session in the red. Prominent losers in the 30-share Sensex pack were Reliance (-7.03%), HeroMotoCorp (-5.45%), TCS (-4.54%), Adani Ports (-4.17%), Sun Pharma (-3.70%), ONGC (-3.74%) and Sun Pharma (-3.70%). Main laggards on NSE Nifty were Hindustan Petroleum (-22.44%), BPCL (-18.88%), IOC (-18.24%), ONGC (-9.98%), Reliance (-8.02%).

“The Sensex and Nifty has fallen sharply on the back of selling witnessed across all Asian markets. Since most Asian markets are importers of crude, the impact of rising crude prices and rising dollar index weigh on their trade balance.

FPIs are selling in emerging markets which is visible in India also”, Rusmik Oza, Senior Vice President, Head of Fundamental Research, Kotak Securities told.

The correction is likely to continue going forward as the markets have entered a bear mode, AK Prabhakar, head of research, IDBI Capital Markets, told . “Markets have corrected every five years in the run up to elections.” He expects the Nifty to correct 6-8 per cent this month.

The markets are in the throes of panic. There are multiple factors contributing to this situation. The first of course is the IL&FS fiasco which has led to question marks around the NBFC sector.

NBFCs are also playing cautious now because of the liquidity crunch, said Raghvendra Nath, Managing Director, Ladderup Wealth Managment. I do not think that market is looking at RBI policy to bring some respite, he added.

Crisis-hit IL&FS will be taken over by the government as debt defaults by the infrastructure group have led to fears of contagion in the markets and a liquidity crisis.

Back to top button