1. 5 reasons why BSE Sensex cracked over 400 points today; NSE Nifty breached 8,600-mark

5 reasons why BSE Sensex cracked over 400 points today; NSE Nifty breached 8,600-mark

Benchmark BSE Sensex lost the crucial level of 28,000 in early trade on Thursday and was trading 369.55 points down at 27,712.79 in the afternoon trade

By: | New Delhi | Updated: October 13, 2016 8:12 PM
BSE Sensex NSE Nifty MCX Benchmark BSE Sensex lost the crucial level of 28,000 in early trade on Thursday and was trading 369.55 points down at 27,712.79 in the afternoon trade (Photo: Reuters)

Benchmark BSE Sensex lost the crucial level of 28,000 on Thursday and slipped over 500 points intraday, while NSE Nifty index slipped below 8,600-mark on account of selling in frontline bluechip counters. Later, Sensex closed 439.23 points down at 27,643.11 and Nifty settled 135.35 points lower at 8,573.35. Among the 51-components in the Nifty index, 40 stocks ended the day in red with Bank of Baroda shares falling the most — 4.88 per cent, followed by Adani Ports (down 4.75 per cent), Idea Cellular (down 4.70 per cent), Aurobindo Pharma (down 4.06 per cent) and HDFC (down 3.99 per cent).

Below are 5 reasons why BSE Sensex plunged over 500 points today:

1) Market sentiment remained subdued after Industrial production data contracted once again for the month of August. IIP dropped 0.7 per cent in August due to a slump in manufacturing and mining, in the manufacturing space, capital goods brought about the maximum fall. Participants also remained on sidelines ahead of monthly inflation data based on consumer price index (CPI) for September due later in the day and wholesale price index (WPI) due on Friday.

2) Investors also preferred to trim their bets after the minutes of the US Federal Reserve’s September meeting indicated a possible rate hike this year.

3) Market sentiment also dampened on report that foreign portfolio investors (FPIs), or foreign institutional investors, sold shares worth a net Rs 547.26 crore on October 10, as per provisional data released by the stock exchanges.

4) Weak global cues too weighed down sentiments with Asian stocks stumbling to three-week lows and US stock futures and Treasury yields fell after China’s September trade data showed a sharp decline in exports, raising fresh concerns about the health of the world’s second biggest economy. Meanwhile, European markets also opened lower on Thursday.

5) Subdued opening of local currency also affected market mood in early trade. Indian rupee opened 30 paise lower against the US dollar on Thursday.

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