The benchmark BSE Sensex plunged over 521 points and the NSE Nifty fell below 7,700-mark in early trade. (Reuters)
The BSE Sensex and NSE Nifty opened on a negative note on Friday following global cues amid sustained capital outflows by foreign funds. The benchmark BSE Sensex plunged over 521 points and the NSE Nifty fell below 7,700-mark in early trade.
At 10.59 am, Sensex was down 553.69 points at 25,211.09. Similarly, Nifty was down 169.10 points at 7,653.90 during the same time.
Below are the five reasons why Sensex fell above 500 points today:
1.Global markets: Mixed trends across global markets affected the market sentiments. Asian markets were trading weak as investors turned cautious ahead of the US job data to be released later in the day, also triggered selling by participants. US stocks ended slightly higher as investors looked toward a key US jobs report. The European Central Bank indicating that it could expand its stimulus also weighed on the market sentiment.
2.Monsoon deficit: Fears of poor agriculture output as monsoon deficit widened triggered selling in stocks.
3.Profit-booking by speculators and sustained capital outflows by foreign funds.
4.Indian rupee low: Indian rupee was trading lower on Friday. At 10.39 am, Indian rupee was down 26 paise at 66.38 against the dollar on fresh bouts of dollar demand amid volatile equities.
5. The FIIs were net sellers in the cash market segment on 03 September 2015, Wednesday sold shares worth Rs 1525.14 crore.
“Globally, markets are very choppy and China markets are Closed. The US market will be closed on Monday on account of Labour Day. So, there is a lack of depth. In uncertain scenario traders dont like to carry on long positions, with China being favourite for the hedge traders. If they have to sell, they will look towrads Indian market,” Ajay Jaiswal, head of research at Kolkata-based Microsec Capital, said.
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