Stock market crash: Reasons behind Sensex, Nifty having weak run
Update: 2018-02-06 22:18 IST
In the sixth consecutive session with the benchmark BSE Sensex, markets continued its weak run by falling over 1,200 points in the opening trade on Tuesday.
However, recovery came through with Sensex close to 561 points lower at 34,195 while the broader NSE Nifty closed at 10,498 losing 168 points.
Let’s take a look at the factors that affected the markets today -
- According to the brokers, sharp losses were witnessed in other Asian markets after investor worries peaked over rising US borrowing costs following the record-loss on Wall Street which suffered its biggest decline since 2011.
- Caution was one of the main principles for the investors ahead of the RBI policy meet this week as the repo rate(the rate at which Central Bank lends money to commercial banks) is expected to increase amid inflation concerns.
- Brokers lamented that the rupee depreciating by 29 paise to 64.36 against the dollar diminished the market sentiment in domestic markets.
- In a period of three days, investors lost a whopping Rs 9.6 lakh crore due to the stock-market retreat extending over Budget proposals to tax equities combined with a global sell-off.
- All the Sensex and Nifty components’ strong selling pressure was pulled down and in Monday’s trade, the equities worth Rs 1,263.57 crore were sold off by the foreign institutional investors.