Sensex, Nifty Nosedive Amid Global Selloff

Sensex, Nifty Nosedive Amid Global Selloff

Sensex, Nifty Nosedive Amid Global Selloff

Carnage on D-Street continued for the second consecutive day in a row which pushed the S&P BSE Sensex by over 1200 points in opening trade on Monday but experts feel it was long overdue as valuations were rich.

The BSE Sensex has now lost 1,769.08 points since the Budget on February 1, which imposed a long-term capital gains tax on equities and projected a wider fiscal deficit than earlier targeted.

The Sensex plunged by 839.91 points or 2.34 percent to close at 35,066.75 points, while the Nifty50 dropped 256.30 points or 2.33 percent to 10,760.60 points.

In the broader market, BSE Midcap and the BSE Smallcap indices underperformed to tank over 4 per cent each. All these counters have started correcting and the way their short term charts are shaped up, we do not expect any relief soon in the market. The NSE Nifty was 344 points down at 10,322.

BSE Sensex was down 618.46 points or 1.78 percent at 34,138.70. In early trades in the U.S. on Monday, Dow Jones was down 0.4% while S&P 500 was nearly flat.

Fears of higher interest rates and impact of rising inflation in the USA led to the selloff in global markets.


Meanwhile, a sell-off in global markets has further hit sentiments on domestic bourses which are already reeling under budget woes.

Domestic MFs witnessed total inflows of Rs 1.69-lakh crore in 2017. "We aren't living in an island so there will be ripple effect of what is happening in world on Indian stock markets.Otherwise the sensex & NSE would have come down on 1st day itself", he added.

The rupee lost 0.2% to trade at 64.19 per U.S. dollar, BloombergQuint reported.

Foreign institutional investors sold equities worth Rs 1,263.57 crore in yesterday's trade, as per provisional data. The German DAX dropped 0.8 percent, while France's CAC 40 index and the U.K.'s FTSE 100 shed around 1.5 percent each. Both Sensex and Nifty fell about 3.5 percent, biggest fall since August 2015.

The rout came after USA stocks plunged in highly volatile trading on Monday, with the Dow industrials falling almost 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially higher inflation.

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