Sensex closed 381.95 points down at 25,482.52, while Nifty 50 index fell 105.75 points at 7,731.80.
The BSE Sensex and NSE Nifty slid more than 1 per cent on Wednesday on the back of rising concerns about India Inc earnings, falling commodity prices and weak global markets. Sensex closed 381.95 points down at 25,482.52, while Nifty 50 index fell 105.75 points at 7,731.80.
Sensex opened the day 25,837.71 and touched a high and low of 25,890.36 and 25,481.49, respectively, in trade so far (till 2.55 pm).
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Below are the reasons why BSE Sensex fell over 350 points today
1. Weak Global Markets: European shares fell on Wednesday, retreating back from solid gains made in the previous session, as a new fall in the price of copper caused mining stocks to lose ground. The pan-European FTSEurofirst 300 index, which had risen 2.6 per cent in the previous session, fell 0.7 per cent while the euro zone’s blue-chip Euro STOXX 50 index declined by 0.8 per cent in the early trade. Asian peers, Hang Seng and Nikkei also closed 0.34 per cent and 1.01 per cent down at 22,188.26 and 3,568.47, respectively.
2. Falling Rupee: The depreciation in Indian rupee against dollar also weighed down sentiments. The currency was trading 0.36 per cent down at 66.21 in the late afternoon trade.
3. Sliding Commodity Prices: London copper fell towards fresh six-year lows on Wednesday, as traders increased their bets on waning demand in top user China, leading down most other metals that were already struggling under the weight of a strong dollar.
4. Earning estimates: A dismal September earnings season — in which aggregate sales for the Sensex fell for the fourth consecutive quarter, a first — has forced analysts to downgrade earnings estimates for both this year and FY17. This is the third straight year the Street has been downgraded on profit estimates and it may not be the end of it.