5 Reasons Why Sensex Plunged 740 Points Today

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

Benchmark indices registered sharp losses tracking nervousness in the Chinese stock market coupled with a steep rise in the daily COVID-19 infections along with monthly expiry of the derivative contracts.

At the closing bell, the BSE Sensex stood lower by 740 points (down 1.5%).

Meanwhile, the NSE Nifty ended down by 225 points (down 1.5%).

Maruti Suzuki and Bharti Airtel were among the top losers today.

SGX Nifty was trading at 14,450, down by 102 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 2.2% and 1.9%, respectively.

On the sectoral front, telecom stocks, auto stocks, and power stocks were among the hardest hit.

Asian share markets ended on a negative note today. Weighing on sentiment was a selloff in Chinese technology shares due to concerns they will be delisted from US bourses and worries about a semiconductor shortage.

Both, the Shanghai Composite and the Hang Seng ended lower by 0.1%.

US stock futures are trading positive today with the Dow Jones Futures trading up by 61 points.

The rupee is trading at 72.61 against the US$.

Here are Top 5 Factors Why Indian Stock Markets Were Down Today:

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

India recorded 47,262 fresh COVID-19 cases in a day, the highest single-day rise so far this year, taking the nationwide tally to 1,17,34,058, the Union Health Ministry said on Wednesday. It also said a new "double mutant" variant of COVID-19 was detected in Delhi, Maharashtra, and some other places.

Note that India has recorded the most number of cases after the United States and Brazil. Total deaths have shot up to 160,441 in India.

Weak Global Cues: Asian stock markets witnessed selling today amid reports of lockdowns in Europe and a potential tax hike in the US.

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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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