The BSE Sensex fell over 350 points on Wednesday following uncertainty over GST Bill amid global volatility due to devaluation of the Chinese yuan.
The BSE Sensex and NSE Nifty closed 353.83 points and 108.55 points down at 27,512.26 and 8,353.80, respectively.
Experts have said that if GST Bill is not cleared in Thursday session, market can see a further correction going forward.
“Markets have already suffered by all means due to frequent logjams, and whole monsoon session of Parliament got washed off amid all the political mayhem. This has left the market clueless as there is no indicator to the initiatives presented by government to be turning in a practical mode. If GST Bill is not cleared in Thursday’s session, market can see a further correction by 2-3%, said Rohit Gadia, founder and CEO, CapitalVia Global Research.
Below are the five reasons why Sensex fell over 350 points today:
1) Uncertainty over the fate of GST impacted domestic equity market on Wednesday. Investors said the passage of the goods and services tax bill might get delayed amid continued protests by the Opposition with Thursday being the last day for the current session of the Parliament.
2) China’s unexpected move to devalue its currency on Tuesday has dragged down global equity and currency markets on Wednesday as well. China’s yuan hit a four-year low on Wednesday, falling for a second day after authorities devalued it in a move that sparked fears of a global currency war and accusations that Beijing was unfairly supporting its struggling exporters.
3) Markets around the world fell for a second day on Wednesday, with stocks, the dollar and emerging market currencies all under pressure after China pushed the yuan lower again overnight, boosting the appeal of top-rated government bonds.
4) Oil refiners fell on worries gross refining margins and inventory gains will come off in the July-Sept quarter.
5) Fall in metal stocks and realty stocks dragged the Sensex and Nifty down. The BSE Metal index plunged 4.4 per cent, while realty stocks fell 5.4 per cent.
(With inputs from agencies)