Markets’ bull run ends, sensex crashes 1,066 points: Top reasons behind this slide
Equity indices ended 10-day winning streak on Thursday with the benchmark BSE sensex crashing over 1,000 points, dragged by losses in banking, financial and IT stocks amid weak cues from global markets.
The 30-share BSE index fell 1,066 points or 2.61 per cent to close at 39,728; while the broader NSE Nifty settled 291 points or 2.43 per cent lower at 11,680.
Investors lost Rs 3.25 lakh crore in today’s session as the total market capitalisation of BSE-listed companies fell to Rs 157.31 lakh crore.
Bajaj Finance, Tech Mahindra, IndusInd Bank, ICICI Bank, SBI and Reliance were the top losers in the sensex pack falling over 4.68 per cent. 29 out of 30 stocks finished in red.
While Asian Paints was the only gainer.
On the NSE platform, all sub-indices finished in red with Nifty Bank, Financial Services, Private Bank and IT falling up to 3.36 per cent.
Global stock markets and US futures declined as hopes US leaders will agree on new economic aid before the November 3 presidential election faded. US Treasury secretary Steven Mnuchin said a fiscal stimulus deal would not be likely made before the November election.
“US stimulus expectations has been a driver lately, but markets are now weighing in the possibility of it being pushed beyond the elections, taking some zing out of the recent momentum from global equities,” James said.
IT, banking and financial stocks reversed course to trade lower as investors locked in gains in a sector that has helped drive a rally in the broader market so far this month.
The Nifty IT index slumped 2.87 per cent, after rallying nearly 6 per cent this month on the back of strong quarterly results and buybacks.
Infosys Ltd, whose shares hit a record high earlier in the session, reversed course to finish 2.47 per cent lower. The IT giant raised revenue outlook as robust demand for its digital services helped it beat quarterly profit expectations.
Tap To Explore More : TOI