The BSE Sensex tanked over 500 points intraday on Thursday on account of selling in frontline blue-chip counters. Later, the BSE Sensex ended 461.02 points down at 25,603.10, while NSE Nifty settled 132.65 points down at 7,847.25.
Below are 5 reasons which dented market mood in Thursday’s trade:
1) Market sentiments came under pressure after the Bank of Japan kept monetary policy steady defying market expectations. BOJ also surprised investors by deciding against any fresh market stimulus despite data that underlined huge problems facing the country’s economy.
2) Asian markets ended mostly in red while the European markets traded on pessimistic note.
3) There was caution in the wake of settlement of April series of derivatives contracts, which made investors wary.
4) Counters of FMCG, auto, IT, power, capital goods and oil & gas sectors saw fresh selling.
5) Sentiment also remained downbeat with Fitch ratings’ report which stated that rapid rise in private-sector debt in emerging markets (EMs), particularly in foreign currency, has increased risks at a time of heightened global uncertainty.