Home Top Global NewsMarkets Sensex today: Sensex, Nifty tumble over 1% each. Key factors behind today’s market crash

Sensex today: Sensex, Nifty tumble over 1% each. Key factors behind today’s market crash

by Ozva Admin
Domestic stock indices closed in the red on Thursday, following a four-day slide in US stocks. Concerns about the Fed’s aggressive rate hikes weighed heavily on investor sentiment globally. The double-digit rise in India’s GDP figures could not help push the market higher.

The 30-stock Sensex fell 770 points to close at 58,767. His widest pair, Nifty50, dropped 217 points to finish at 17,543.

Reliance Industries (RIL) was the biggest loser from the pack of 30 shares, down 2.99 percent at Rs 2,560.20. TCS fell 2.49 percent, Sun Pharma fell 2.21 percent and Tech Mahindra lost 2.15 percent. Infosys, NTPC and HUL were among other Sensex stocks that were cut.

smart talk

On the other hand, Bajaj Finserv rose 2.58 per cent to Rs 17,404. Asian Paints rose 1.63%, followed by Bharti Airtel 1.18% and Titan Company 0.93%.

Earlier in the day, Asian markets closed lower. South Korea’s Kospi, Japan’s Nikkei and China’s Shanghai Composite fell 2.28%, 1.53% and 0.54%, respectively.

The market capitalization of all companies listed on EEB fell by Rs 1.42 lakh crore to Rs 278.8 lakh crore from Rs 280.21 lakh crore.

By sector, the Nifty IT index fell almost 2 percent, while oil and gas fell 1.82 percent. Nifty Pharma and Financial Services also closed lower. However, the Nifty Midcap50 was up 0.50%, while the Nifty Smallcap50 was down 0.11%.

Key factors behind today’s sale:

US clearance

Although the domestic market was closed on Wednesday due to Ganesh Chaturthi, US stocks continued to fall during the fourth session. Also on Thursday, S&P500 futures were trading 0.70 percent lower at the 3,928 level, signaling another weak start day for Wall Street stocks.

Following it, SGX Nifty futures were trading around the 17,450 level earlier in the day against the Nifty50 close of 17,759.30, suggesting a large gap opening for the NSE barometer.

Asian market signals

Asian stocks were trading mostly lower on Thursday, following the general slide on Wall Street as investors braced for higher interest rates and inflation concerns for some time. Benchmark indices fell in Tokyo, Sydney, South Korea and Hong Kong in early trading, but rose slightly in Shanghai.

Japan’s benchmark Nikkei 225 index fell 1.5 percent in morning trading to 27,673.14. Australia’s S&P/ASX 200 fell 1.7 percent to 6,865.60. South Korea’s Kospi lost 1.7 percent to 2,429.75. Hong Kong’s Hang Seng lost nearly 0.8 percent to 19,799.92, while the Shanghai Composite rose 0.3 percent to 3,212.96.

factory activity

Asia’s factory activity slumped in August as China’s zero-Covid restrictions and cost pressures continued to hurt businesses, surveys showed on Thursday, dimming prospects for the region’s fragile economic recovery. Manufacturing activity was weak in countries ranging from Japan, China, South Korea to Taiwan, in a sign that sluggish demand was adding to headaches for companies already suffering from lingering supply constraints.

On the other hand, the Chinese city of Chengdu will carry out mass tests for Covid-19 from Thursday to Sunday, its city government said on Thursday. It was previously reported that several areas of Guangzhou and Shenzen in the south have stepped up their Covid-19 restrictions.

weak rupee

The rupee fell 3 paise to 79.55 against the dollar in early trading. The dollar index hovered near 109 and Asian currencies were generally lower. Risk aversion and high Treasury yields boosted demand for the safe-haven dollar. The dollar has an inverse relationship with stocks. The likelihood that the Fed’s continued accelerating pace of rate hikes will fuel an economic downturn has been weighing on demand for risky assets, Reuters reported. Fed officials have balked at expectations of a slower pace of rate hikes and that the US central bank will cut rates late next year, he noted.

heavyweight drop
Only Reliance Industries, the index heavyweight, contributed some 250 points to the Sensex decline, following reports that the government revised upwards the windfall tax on crude oil.

The center has raised windfall profits tax on domestic crude oil to Rs 13,300 per tonne from the previous Rs 13,000 per tonne. It also revised the export tax on aviation turbine fuel (ATF) from Rs 2 per liter to Rs 9 per liter and increased the additional excise tax on diesel exports from Rs 6 per liter to Rs 12 per litre.

(Disclaimer: The recommendations, suggestions, points of view and opinions given by the experts are their own. These do not represent the views of the Economic Times)

You may also like

Leave a Comment