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  1. 5 reasons why Sensex nosedived over 350 points intraday

5 reasons why Sensex nosedived over 350 points intraday

The benchmark index BSE Senex continued to trade in red and nosedived over 350 points in afternoon trading session. Similarly, Nifty slid over 100 points and breached the psychological level of 7,800.

By: | New Delhi | Updated: May 13, 2016 1:11 PM
sensex, nifty The benchmark index BSE Senex continued to trade in red and nosedived over 350 points in afternoon trading session. Similarly, Nifty slid over 100 points and breached the psychological level of 7,800.

The benchmark index BSE Senex continued to trade in red and nosedived over 350 points in afternoon trading session. Similarly, Nifty slid over 100 points and breached the psychological level of 7,800.

Here are 5 reasons which dampened market sentiments:

1) Sustained selling by funds and retail investors in blue chip counters amid negative cues from Asian markets, tracking overnight losses in the US and European markets dragged markets in red on Thursday.

2) Weak economic data also weighed on investors’ sentiment. IIP growth plunged to 0.1 per cent in March due to poor performance of manufacturing and mining sectors coupled with sharp decline in the output of capital goods, while retail inflation soared to 5.39 per cent in April on higher food prices, reversing a downward trend seen in recent months.

Read more: ‘Sell in May’ adage may not work this year; 5 stocks to stay invested

3) Banking stocks came under pressure after Reserve of Bank India (RBI) issued guidelines on ownership in private sector banks. Yes Bank , Kotak Mahindra Bank and HDFC Bank were down by over half a percent, while ICICI Bank was down by over three percent. RBI allowed foreign banks to invest up to 10 per cent in local private lenders and supranational institutions such as Life Insurance Corporation of India to take this to as much as 40 per cent as part of a sweeping set of measures expected to help them shore up capital and possibly encourage consolidation in the sector.

4) Weak Rupee: The rupee depreciated by 17 paise to 66.79 against the US dollar in early trade due to increased demand for dollar from importers amid a lower opening of the domestic equity market.

5) Chinese steel futures were on course for their biggest weekly fall since 2009 on Friday, as a selloff in the country’s commodities showed signs of spreading to other global markets for raw materials such as palm oil and base metals.

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