Monday blues on D-Street: Sensex tumbles 500 points; 4 key factors behind slump

By: | Updated: September 17, 2018 4:37 PM

The Sensex closed Monday's trade 505.13 points, or 1.33% lower at 37,585.51 points.

share market live, share market news, share market latest updates, share market now, share market update today, business news in hindiThe domestic stock markets underwent intense selling pressure on Monday.

The domestic stock markets underwent intense selling pressure on Monday which sent the benchmark Sensex of the BSE tumbling down over 500 points. The other benchmark index, NSE Nifty 50 gave up the 11,400-mark. Index heavyweights Sun Pharma, Tata Motors, HDFC-twins, Reliance Industries, Asian Paints, Axis Bank, SBI, Hero Motocorp, M&M and Yes Bank lost up to 2.8% on the Sensex.

The Sensex closed Monday’s trade 505.13 points, or 1.33% lower at 37,585.51 points. The NSE Nifty ended the day at 11,377.75 points, down 137.45 points or 1.19%. We take a look at the four key factors that weighed on market sentiment today.

Rupee slump: The rupee depreciated sharply on Monday, falling 83 paise to a low of 72.6875 against the US dollar, data from Bloomberg showed.

Donald Trump’s tariff threats: On the weekend, Reuters reported a senior administration official as saying that U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday.

Economic review outcome fails to boost sentiment: The crucial economic review meeting by Prime Minister Narendra Modi over the weekend failed to boost market sentiment. Analysts said the measures announced by the government for current account deficit, as well as to stem the rupee’s fall, fell short of expectations.

Global markets: Most Asian share markets slid on Monday amid reports that Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing, Reuters reported. However, European share markets recovered rapidly after a weak start with investors focusing on strong results.

“The benchmark indices rallied over 1% down today taking cues from their global peers, which fell amid reports that the US was about to announce a new round of tariffs on Chinese imports. That apart, a weak rupee also affected sentiment,” said Rahul Sharma, Senior research analyst, Equity 99.

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