Bloodbath Continues On Stock Market; Sensex Falls 300 Points

Alicia Cross
February 7, 2018

The Sensex crash has shaken up investors around the country.

Meanwhile, oil prices dropped by more than 1% today, extending falls from the previous session as global financial markets tumbled. There are a bunch of reasons why Sensex is falling today. The recovery was led by private banks like ICICI BankAxis Bank that rose 1-2 per cent. Reportedly, investors lost around Rs 4.95 trillion amid sell-off in the broader market.

There are a number of factors - domestic and worldwide - that are behind the index's recent (and seemingly continuing) downward turn.

Investors responded by moving "to sell out of stocks and put money into assets like bonds" to gain from higher interest rates, noted BBC.

The sharp rally in the Indian equity market has changed course for now and hit a pause, with the carnage in global markets weighing down heavily. Investors are anxious that a return of inflation may force the Fed to raise rates quicker than expected.

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U.S. stocks plunged in highly volatile trading.

Out of the 30 stocks on the Sensex, 29 closed lower. Yields on 10-year U.S. Treasury paper were up at a four-year peak of 2.86 per cent today, having jumped nearly 7 basis points on Friday. "We couldn't have shifted budget's date, global meltdown in stock exchange came at very wrong time for us.Following budget on 1st Feb, even after declaring there is long term capital gain tax, market was okay at end of day".

All components in the Sensex and Nifty50 index were in the red. "We expect the RBI to remain on a pause in this policy".

"The unprecedented downfall in Dow yesterday and combination of other negative factors like the high fiscal deficit projected and proposal on LTCG and fear of the stand that RBI will take during Wednesday's review has led to this melt-down or selling panic", said Jasani. The result was announced during market hours today, 6 February 2018. This is the lowest it has been in the last six weeks.

Lupin declined 5.9% to 801.65 rupees, its lowest level since August 2013, after the drug maker reported a worse-than-expected 65% decline in third-quarter net profit.

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Other reports by Free-Prsite

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