5 Reasons Why Sensex Plunged Over 1,100 Points Today

Extending losses to the fifth straight session, Indian share markets ended deep in the red, dragged down by index heavyweights Reliance Industries and TCS and amid a lackluster trend in global markets.

The BSE Sensex plunged over 1,250 points and slipped below 50,000 mark for the first time in nearly three weeks, while the NSE Nifty slipped as much as 340 points to 14,635.

With today's fall, both the benchmarks have shed over 4% in the past five trading sessions.

At the closing bell, the BSE Sensex stood lower by 1,145 points. Meanwhile, the NSE Nifty ended down by 306 points.

ONGC was among the top gainers today. Dr Reddy's Lab, on the other hand, was among the top losers today.

SGX Nifty was trading at 14,706, down by 300 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 1.3% and 1%, respectively.

On the sectoral front, energy stocks, IT stocks, and automobile stocks were among the hardest hit.

Shares of Honeywell Automation and Ratnamani Metals hit their respective 52-week highs today.

US stock futures are trading lower today indicating a weak opening for Wall Street indices. Nasdaq Futures are trading down by 169 points (down 1.2%), while Dow Futures are trading down by 193 points (down 0.6%).

The rupee is trading at 72.49 against the US$.

Gold prices are trading up by 1% at Rs 46,638 per 10 grams.

Here are the Top 5 Factors Why Indian Stock Markets Plunged Today

Weak Global Cues: Asian share markets erased their opening gains and ended mixed as expectations for faster economic growth and inflation globally battered bonds and boosted commodities while rising real yields made equity valuations look more stretched in comparison.

The Hang Seng ended down by 1.1% while the Shanghai Composite slid 1.5%.

Rising Bond Yields: A jump in bond yields both in India and in the US unsettled investors. The government bond yields jumped to their highest level since August 27 while yields on 10-year Treasury notes have already reached 1.38%, breaking the psychological 1.30% level and bringing the rise for the year so far to a steep 43 basis points, reported Reuters.

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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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