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Thursday, October 22, 2020

Sensex Crash: Markets end bull run, sensex crashes 1,066 points: Top reasons behind this slide | India Business News – Times of India

NEW DELHI: Equity indices ended 10-day winning streak on Thursday with the benchmark BSE sensex crashing over 1,000 points, dragged by losses in banking, financial and IT stocks amid weak cues from global markets.
The 30-share BSE index fell 1,066 points or 2.61 per cent to close at 39,728; while the broader NSE Nifty settled 291 points or 2.43 per cent lower at 11,680.
Bajaj Finance, Tech Mahindra, IndusInd Bank, ICICI Bank, SBI and Reliance were the top losers in the sensex pack falling over 4.68 per cent. 29 out of 30 stocks finished in red.
While Asian Paints was the only gainer.
On the NSE platform, all sub-indices finished in red with Nifty Bank, Financial Services, Private Bank and IT falling up to 3.36 per cent.
Here are the key points behind the slide:
* Stimulus hopes fade:
Global stock markets and US futures declined as hopes US leaders will agree on new economic aid before the November 3 presidential election faded. US Treasury secretary Steven Mnuchin said a fiscal stimulus deal would not be likely made before the November election.
“US stimulus expectations has been a driver lately, but markets are now weighing in the possibility of it being pushed beyond the elections, taking some zing out of the recent momentum from global equities,” James said.
* US-China tensions:
The US state department has submitted a proposal for the Trump administration to add China’s Ant Group to a trade blacklist, news agency Reuters reported, before the financial technology firm is slated to go public.
The move comes as China hardliners in the Trump administration are seeking to send a message to deter US investors from taking part in the initial public offering for Ant.
* Rising Covid concerns:
Concerns of fresh lockdowns amid rising Covid-19 cases also spurred profit-taking. Some European countries are reviving curfews and lockdowns to try to contain the rise in new coronavirus cases, with Britain expected to impose tougher Covid-19 restrictions from Friday midnight.
France became the latest European nation to toughen anti-coronavirus measures, imposing a curfew in Paris and eight other cities from Saturday, while Germany and Ireland also ramped up restrictions.
In India, 67,708 new Covid-19 cases and 680 deaths were reported in the last 24 hours. Total case tally stood at 73,07,098, including 8,12,390 active cases.
* IT, financial stocks slide:
IT, banking and financial stocks reversed course to trade lower as investors locked in gains in a sector that has helped drive a rally in the broader market so far this month.
The Nifty IT index slumped 2.87 per cent, after rallying nearly 6 per cent this month on the back of strong quarterly results and buybacks.
Infosys Ltd, whose shares hit a record high earlier in the session, reversed course to finish 2.47 per cent lower. The IT giant raised revenue outlook as robust demand for its digital services helped it beat quarterly profit expectations.
(With agency inputs)

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