Sensex falls 470 points, Nifty just above 10,700; key reasons for today’s plunge

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Published: September 19, 2019 4:20:02 PM

The benchmark equity indices -- Sensex and Nifty -- on Thursday ended the trade on a negative note, owing to decline in the banking stocks.

Sensex, Nifty news, stock market news, FM Nirmala Sitharaman news, Finance Minister, Nirmala Sitharaman, stock market update, FPI tax, reforms, FPI taxThe 30-share Sensex ended the trade 470.41 points down at 36,093.47, while NSE Nifty shed over 100 points to close at 10,705.

The benchmark equity indices — Sensex and Nifty — on Thursday ended the trade on a negative note, owing to decline in the banking stocks. The 30-share Sensex ended the trade 470.41 points down at 36,093.47, while NSE Nifty shed over 100 points to close at 10,705. Reliance Industries (RIL), ICICI Bank, TCS, HDFC and Infosys contributed the most to the Sensex’s fall. The shares of Yes Bank fell more than 15 per cent after a Moody’s report said Altico default may be credit negative for banks given their significant exposure to the real estate sector.

“Markets are in bad shape and we feel the situation may deteriorate further in the absence of any major positive. The recent fall indicates prevailing uneasiness among the participants, who are hoping for some major announcements from the government to arrest the slowdown signals,”Ajit Mishra Vice President, Research, Religare Broking.

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“Nifty continues on its near term weakness and is threatening to break the large range it has been in for a while. Index has been in a  range between 10,650-11,150 and is close to breaking it on the downside. If index manages to decisively breach below the lower end of the range expect further downside pressure for the Nifty. Fresh breakdowns are happening on individual leading stocks which is not a good sign. 10,650 zone is the last hope for the bulls in the near term,” Amit Shah, Technical Research Analyst with Indiabulls Ventures.

The FPIs on Wednesday sold shares to the tune of Rs 959.09 crore, while domestic institutional investors bought equities worth Rs 780.45 crore, provisional data showed. The rupee fell 6 paise to trade at 71.30 per US dollar.

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