Stock market crash today: The Indian stock market indices, BSE Sensex and Nifty50, experienced a significant downturn on Thursday, with the S&P BSE Sensex and the broader Nifty both falling by nearly 1% ahead of the final phase of polling.
The Sensex hit an intraday low of 73,668.73, sliding by almost 800 points, while the Nifty touched 22,459.15, correcting by 250 points.This marks the fourth straight day of declines for the benchmark indices.
BSE Sensex ended the day at 73,885.60, down 617 points or 0.83%. Nifty50 closed the trading session at 22,488.65, down 216 points or 0.95%.
Several factors contributed to the market’s downfall.
Firstly, heavyweights such as Reliance Industries (RIL), Infosys, and Tata Consultancy Services (TCS) experienced corrections, significantly impacting the index movement.
Also Read | What are ‘Modi stocks’? Global brokerage CLSA has this to say on these ‘outperformers’ ahead of Lok Sabha election results
Secondly, with just one phase of polling remaining on Saturday, June 1, election jitters were evident on the Street, according to an ET report. Analysts are considering various scenarios for the market, and a 10-15% correction is not being ruled out if the outcome is unfavorable for the incumbent NDA government.
Additionally, comments from Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, indicating that policymakers were not ruling out further rate hikes, added to the market’s nervousness. Kashkari’s remarks on Tuesday, emphasizing the restrictive stance of the US central bank’s policy, led to an increase in US bond yields.
Also Read | When will BSE Sensex hit 1 lakh? Mark Mobius says ‘Indian markets will…’
“Hotter and stickier-than-expected global inflation appears to be taking the air out of asset markets,” an AP report said, quoting Mizuho Bank. “In other words, “Goldilocks” coming undone. And worries about adverse demand impact from higher rates seeping through,” it said.
Furthermore, Thursday being the F&O monthly Nifty expiry, traders could be squaring off their positions. The Indian markets also took cues from their Asian peers, with major indices such as Japan’s Nikkei 225, Hong Kong’s Hang Seng, and China’s Shanghai Composite all experiencing sharp declines.
The Sensex hit an intraday low of 73,668.73, sliding by almost 800 points, while the Nifty touched 22,459.15, correcting by 250 points.This marks the fourth straight day of declines for the benchmark indices.
BSE Sensex ended the day at 73,885.60, down 617 points or 0.83%. Nifty50 closed the trading session at 22,488.65, down 216 points or 0.95%.
Several factors contributed to the market’s downfall.
Firstly, heavyweights such as Reliance Industries (RIL), Infosys, and Tata Consultancy Services (TCS) experienced corrections, significantly impacting the index movement.
Also Read | What are ‘Modi stocks’? Global brokerage CLSA has this to say on these ‘outperformers’ ahead of Lok Sabha election results
Secondly, with just one phase of polling remaining on Saturday, June 1, election jitters were evident on the Street, according to an ET report. Analysts are considering various scenarios for the market, and a 10-15% correction is not being ruled out if the outcome is unfavorable for the incumbent NDA government.
Additionally, comments from Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, indicating that policymakers were not ruling out further rate hikes, added to the market’s nervousness. Kashkari’s remarks on Tuesday, emphasizing the restrictive stance of the US central bank’s policy, led to an increase in US bond yields.
Also Read | When will BSE Sensex hit 1 lakh? Mark Mobius says ‘Indian markets will…’
“Hotter and stickier-than-expected global inflation appears to be taking the air out of asset markets,” an AP report said, quoting Mizuho Bank. “In other words, “Goldilocks” coming undone. And worries about adverse demand impact from higher rates seeping through,” it said.
Furthermore, Thursday being the F&O monthly Nifty expiry, traders could be squaring off their positions. The Indian markets also took cues from their Asian peers, with major indices such as Japan’s Nikkei 225, Hong Kong’s Hang Seng, and China’s Shanghai Composite all experiencing sharp declines.