The BSE Sensex and NSE Nifty fell over 700 points intraday on Tuesday following weak macroeconomic-data amid subdued Asian cues due to weakness in China’s economy. (Photo: PTI)
The BSE Sensex and NSE Nifty fell over 700 points intraday on Tuesday following weak macroeconomic-data amid subdued Asian cues due to weakness in China’s economy.
At 2.31 pm, Sensex fell 703 points to trade at 25579.88. At 2.39 pm, Nifty was down 209.35 points at 7,761.95.
“The volatility in the markets is largely because of factors outside the control of market participants in India,” Deven Choksey, managing director, KR Choksey Securities said.
Below are the 5 reasons why Sensex fell belw 700 points today
1. Market sentiments were affected after India’s GDP growth slowed to 7 per cent in the April-June quarter from 7.5 per cent in the previous quarter.
2. Subdued Asian cues amid weakness in China’s economy, loomed over the trading sentiments. In overseas markets, Asian stocks traded lower after two surveys showed China’s manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy.
3. Foreign investors pulled out a record $2.55 billion from Indian markets in August, the highest ever monthly outflow at least since 2002 as per regulatory data that took a toll on market sentiments.
4. Banking and financial stocks fell after reports of HDFC Bank’s steep base rate cut on Monday sparked fears that other lenders will be able to match it only at the cost of margins. This contributed to markets decline as BSE Bankex plunged over 3 per cent intraday on Tuesday.
5. Barring IT and Teck sectors, rest all other sector led by banks, capital goods, consumer durables, metal, auto, realty, oil & gas and power witnessed sustained selling pressure. The BSE Metal index was down 3.58 per cent at 7446.07.
With agency inputs
| Subscribe To Our Free Newsletter |
