Top 5 reasons why Sensex crashed 792 points today!
Post-budget 2019, the Indian bond market is expected to attract foreign funds in bulk and this selloff has been caused by the FIIs fishing out their money from the Indian equity market.
Stock markets have extended their post-budget reaction on Monday. BSE Sensex lost nearly 620 points and went below the psychological 39,000 levels while the 50-stock Nifty crashed over 200 points to around 11,612 levels. The Bank Nifty index crashed 750 points and touched 30,729 levels. Public sector, consumer goods, infrastructure and realty stocks are the major losers in the intraday trade. This has happened amid heavy selloff by FIIs.
Commenting on the market scenario Anindya Banerjee, Deputy Vice President— Derivative and Currency at Kotak Securities said, "Post-budget 2019, the Indian bond market is expected to attract foreign funds in bulk and this selloff is caused by the FIIs fishing out their money from the Indian equity market and they may park their money from now onwards into the Indian bond market as the Indian bond market gives highest returns in comparison to other emerging and developed economies."
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Top 5 reasons that led to crash at Indian indices:
1] Hopes of delay in Fed rate cut post-robust US job data;
2] Rising US-Iran tension putting crude oil prices under pressure;
3] FIIs fishing money from the equity market and investing in the Indian bond market post-budget 2019 presentations;
4] Rupee rising against the dollar has led to more FIIs looking towards Indian bond and mutual fund markets; and
5] Post-budget 2019, domestic institutional investors (DII) going flat on Indian indices.
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