Bears expanded their footprints on domestic equity markets as the BSE Sensex fell over 800 points on Thursday and Nifty fell below the psychological mark of 7,000. Sensex tanked 807.07 points to end at 22,951.83, while Nifty settled 239.35 points down at 6,976.35.
Below are the 5 reasons why stock markets fell today
1) Weak Global Cues: Following weak US and Asian markets, Indian stock market opened in red on Thursday. Sell-off in European shares in early deals also dented market sentiments back home. A top European share index plunged to its lowest level in 2-1/2 years on Thursday, led down by a renewed slump in banks and miners, with Societe Generale sliding after disappointing results.
2) US Fed statement: Fed Chair Janet Yellen kept options open for more US rate hikes. Yellen told Congress she does not expect to reverse the rate hike programme that began in December but said she saw risks to the US economy.
3) Disappointing SBI results: Bleak Q3 numbers from SBI, India’s largest lender, also affected market mood in the afternoon trade. State Bank of India on Thursday posted 67 per cent decline in consolidated profit to Rs 1,259.49 crore for the third quarter ended December 31, 2015-16, on account of higher provisioning for bad loans. The SBI Group had registered a net profit of Rs 3,828.20 crore in the October-December quarter of the 2014-15 fiscal.
4) Falling crude: Oil slid on Thursday, dented by record US crude inventories at the Cushing delivery point, worries about the demand outlook, and as Goldman Sachs said prices would remain low and volatile until the second half of the year. In a sign that producers are still competing for market share by lowering prices, Iran offered its crude to Asia at a discount to rival OPEC producer Saudi Arabia. Brent crude futures were down 31 cents at $30.53 per barrel at 0850 GMT.
5) Selling pressure: High selling in power, realty and metal stocks contributed in the market fall.