From Brexit to weak rupee, 5 reasons why Sensex tanked over 350 points intraday

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Updated: June 13, 2016 4:21:51 PM

Triggered by subdued global cues, domestic benchmark BSE Sensex slipped over 350 points intraday on Monday before closing 238.98 points down at 26,396.

Sensex falls over 350 pointsTriggered by subdued global cues, domestic benchmark BSE Sensex slipped over 350 points intraday on Monday before closing 238.98 points down at 26,396.

Triggered by subdued global cues, domestic benchmark BSE Sensex slipped over 350 points intraday on Monday before closing 238.98 points down at 26,396. Likewise, the Nifty 50 index which fell below the crucial 8,100-mark in the morning trade closed 59.45 points down at 8,110.60.

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Below are 5 reasons which dampened market sentiments in Monday’s trade:

1) Sentiments remained under pressure due to weak industrial production data, as the IIP contracted by 0.8 per cent in April, the first decline in three months, on the back of sharp fall in capital goods production and manufacturing activity.

2) Traders also remained on sidelines ahead of consumer price index (CPI) data to be released later in the day and inflation based on the wholesale price index (WPI) for May to be released on Tuesday.

3) Global cues remained feeble as traders across the world remained worried about Britain’s exit from European Union, with some terming it as a biggest crisis for the financial markets since the collapse of Lehman Brothers.

4) Asian markets also under pressure ahead of the US Fed meet due to begin from June 14 and BOJ meet later during this week amid jitters over the forthcoming referendum on whether the UK would remain in the European Union scheduled on June 23.

5) Weak rupee further dampened market sentiments. The rupee again hit the 67-mark against the dollar after plunging 24 paise in early trade on Monday on sustained demand for the American currency from importers and bankers amid a lower opening in the domestic equity market.

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