Sensex, Nifty crash: From US Fed, Donald Trump, IMF to trade war, check 10 power points
The 30-share BSE Sensex, which had gained 461.42 points Wednesday, slipped below the 34,000-mark by crashing 1,030.40 points, or 2.95 per cent, to 33,730.49 in early trade. The broader Nifty slipped below the 10,200-mark by tumbling 281.70 points, or 2.69 per cent, to 10,178.70.
Benchmark BSE Sensex crashed in early trade, tracking a global sell-off as the rupee hit yet another record low of 74.45 against the US dollar. The 30-share BSE Sensex, which had gained 461.42 points Wednesday, slipped below the 34,000-mark by crashing 1,030.40 points, or 2.95 per cent, to 33,730.49 in early trade. The broader Nifty slipped below the 10,200-mark by tumbling 281.70 points, or 2.69 per cent, to 10,178.70.
1. Traders attributed the carnage in domestic bourses to the sell-off in international bourses:
a) US stocks tumbled on heavy correction in tech stocks,
b) Fresh concerns over US Fed rate hike
c) Looming impact of the US' trade war with the China.
2. Rising 10-year US treasury bonds, jumping above 3 per cent last week too spooked investors
3. International Monetary Fund (IMF) slashing its global growth forecast and weakness in emerging markets.
4. Widespread selling pulled down all sectoral indices led by realty, IT, metal and banking, that fell up to 3.66 per cent.
5. Worst affected stocks are SBI, Tata Steel, Infosys, Axis Bank, Bharti Airtel, Yes Bank, Maruti Suzuki, HUL, TCS, HDFC, ICICI Bank, Adani Ports, Wipro, Tata Motors, ITC, Coal India, Bajaj Auto, L&T, Sun Pharma IndusInd Bank and M&M, dropping up to 3.99 per cent
6. Rupee slumped by 24 paise to an all-time low of 74.45 against the dollar due to heavy demand for the US currency from importers.
7. Foreign portfolio investors sold shares worth a net of Rs 1,096 crore Wednesday.
8. Japan's Nikkei plunged 3.41 per cent, Hong Kong's Hang Seng lost 3.53 per cent, Singapore exchange was down 2.64 per cent and the Korean bourse fell 2.28 per cent in late morning deals.
9. The US Dow Jones Industrial Average slumped 3.15 per cent Wednesday, its biggest fall since February.
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10. US President Donald Trump said that Wednesday`s stock market sell-off was in fact a long-awaited "correction," and that the Federal Reserve, which has been raising U.S. interest rates, had gone "crazy."