6 Reasons Why Sensex Plunged 1,708 Points Today

Indian share markets witnessed huge selling pressure today as fears that the government could go for stricter lockdowns to curb the second wave of COVID-19, hampering the economic recovery, spooked market participants.

At the closing bell, the BSE Sensex stood lower by 1,708 points (down 3.4%).

Meanwhile, the NSE Nifty ended down by 524 points (down 3.5%).

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

SGX Nifty was trading at 14,350, down by 536 points, at the time of writing.

Midcap and smallcap stocks plunged today. The BSE Mid cap index and the BSE Smallcap index ended down by 5.3% and 4.8%, respectively.

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

Asian share markets ended on a negative note today. The Shanghai Composite and the Hang Seng ended lower by 1% and 1.1%, respectively. The Nikkei stood lower by 0.8%.

US stock futures are trading lower today with Dow Futures trading down by 81 points.

The rupee is trading at 75.06 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.3% at Rs 46,751 per 10 grams.

Here are the Top 6 Factors Why Indian Stock Markets Crashed 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.

India has reported 1,68,912 fresh COVID-19 cases in the last 24 hours - the biggest spike in daily cases witnessed since the pandemic began last year.

Lockdown Fears: One of the key reasons behind today's weakness is the possibility of a lockdown in Maharashtra, which contributes 14.5% of the country's overall GDP.

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

Rising Bond Yields: US Treasury yields climbed on Friday after higher-than-expected March producer price data showed inflation had risen, echoing other reports that said the world's largest economy was on a steady road to recovery from the pandemic.

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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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