The Sensex plunged around 200 points, while the Nifty breached 10,300-mark ahead of the crucial September quarter GDP data and the expiry day of November F&O series. Even the midcap stocks are trading in the red. The rupee too was trading at 64.47 a dollar, down 0.23 percent from its Wednesday’s close of 64.32 at 2 pm today. Other than the scheduled GDP data and F&O expiry, geopolitical tensions in the Korean peninsula is also adding to the fall. Even most of the Asian shares also tanked in the early morning session on Thursday, triggered by the plunge in technology shares after the US technology benchmark index lost nearly 1 percent on Wednesday.
Here are three major reasons why markets are in a free fall today:
India is scheduled to announce the July-September GDP growth rate today at 5.30 pm. The second quarter GDP growth rate is going to record the impact of the Goods and Services Tax on the economy for the first time since its implementation. It is being estimated that India will embark upon an upward growth after 5-quarters of slowdown, especially after hitting a 3-year low to 5.7 percent in the previous quarter due to self-imposed noteban and massive destocking ahead of an ambitious switch to the GST regime.
The investors are cautious ahead of the expiry of November F&O series on Thursday. Offloading of positions by participants as today being the last trading session of November series contracts in the derivatives segment pulled down the index.
Tensions in Korean peninsula
Geopolitical tensions on the back of the recent successful test launch of the intercontinental ballistic missile (ICBM) by North Korea have rattled the market. Markets worldwide are held back by caution over the latest missile test by North Korea and concerns arising from the same. The experts expect that North Korea will continue with its weapons program.
The benchmark indices closed on a flat note on Wednesday. The NSE Nifty 50 closed 8.95 points or 0.09 percent lower at 10,361.30 points while the BSE Sensex closes at 33,602.76 points down 15.83 points or 0.05 percent.