4 Reasons Why Sensex Plunged 870 Points Today

Indian share markets witnessed huge selling pressure today and ended deep in the red.

Benchmark indices registered sharp losses as a record single-day jump in COVID-19 cases dragged share markets lower and the volatility indicator shot up amid selling across sectors.

At the closing bell, the BSE Sensex stood lower by 870 points (down 1.7%).

Meanwhile, the NSE Nifty ended down by 229 points (down 1.5%).

Bajaj Finance and IndusInd Bank were among the top losers today.

SGX Nifty was trading at 14,716, down by 276 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 1.1% and 1%, respectively.

On the sectoral front, finance stocks, banking stocks, and realty stocks were among the hardest hit.

Asian share markets ended on a positive note today. The Shanghai Composite and the Hang Seng ended higher by 0.5% and 1.9%, respectively.

US stock futures are trading positive today with the Dow Jones Futures trading up by 222 points.

The rupee is trading at 73.32 against the US$.

Gold prices for the latest contract on MCX are trading down 0.2% today at Rs 45,326 per 10 grams.

Here are Top 4 Factors Why Indian Stock Markets Were Down Today:

Spike in COVID-19 Cases: A sharp rise in COVID-19 cases are posing a serious threat to the economic recovery of the world.

The rising number of cases in India amid the second wave is dampening the stock market sentiment.

India reported 1,03,558 new COVID-19 cases, 52,847 discharges, and 478 deaths on Sunday, as per the Union Health Ministry.

Many Indian states have announced restrictions on human gatherings and the threat of a complete lockdown looms.

Earnings and RBI Monetary Policy: Market participants were also cautious as they await the RBI monetary policy committee's (MPC) outcome and Q4 earnings of various companies to get cues for the stock markets.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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