Bloodbath On Dalal Street: 6 Reasons Why Sensex Nosedived 1,939 Points Today

Indian share markets witnessed a sharp sell-off today and ended deep in the red.

The selling dragged the benchmark Sensex lower by more than 2,148 points and made the Nifty trade below the 14,500-mark. For Sensex, it was the worst daily fall since May 2020.

At the closing bell, the BSE Sensex stood lower by 1,939 points (down 3.8%).

Meanwhile, the NSE Nifty ended down by 568 points (down 3.8%).

ONGC and Mahindra & Mahindra were among the top losers today.

SGX Nifty was trading at 14,524, down by 656 points, at the time of writing.

The BSE Mid cap index and the BSE Small cap index ended down by 1.8% and 0.8%, respectively.

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

The banking sector and finance sector ended their day down by 4.9% and 4.6%, respectively.

US stock futures are trading flat today indicating a flattish opening for Wall Street indices.

The rupee is trading at 73.76 against the US$.

Gold prices are trading up by 0.5% at Rs 46,460 per 10 grams.

Here are Top 6 Factors Why Indian Stock Markets Crashed Today:

Weak Global Cues: Asian share markets witnessed huge selling after Wall Street's main indexes tumbled, following a steep rise in benchmark US Treasury yields.

The Hang Seng ended down by 3.6% while the Shanghai Composite slid 2.1%.

Rising Bond Yields: A jump in bond yields both in the US and India have unsettled investors. As per media reports, US Treasury yields touched their highest levels since the outbreak of coronavirus pandemic on expectations of a strong economic expansion and related inflation.

Not only in the US, but bond yields are also rising in many other top economies, including Japan.

Rising Covid-19 Cases: Covid-19 cases have started spiking in some regions of India, spooking investors who believed the crisis was all but over.

The daily rise in coronavirus infections in India was recorded above 15,000 after nearly a month taking the country's total tally of COVID-19 cases to 1,10,46,914, according to the Union Health Ministry data updated yesterday.

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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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