Indian stock markets fell sharply on Tuesday, with the BSE
Sensex plunging 506 points to 27,000. The broader Nifty slipped 134 points and
the rupee corrected over 0.5 per cent to 64.24. The decline in stock markets
comes after two days of gains which saw the Sensex gaining over 900 points.
Here are the latest developments:
1) The Sensex, which rose 908 points in the last two trading sessions, succumbed to profit-booking. Analysts say the gains seen in the last two trading sessions were a mere technical pullback. Technical analyst Anil Manghnani told NDTV that the Nifty has stiff resistance around 8,300-8,310 levels.
2) The crucial bills such as Goods and Service Tax amendment bill and the land acquisition bill, which were supposed to be passed in the ongoing session of Parliament, got stuck in the Rajya Sabha. A K Prabhakar, an independent market analyst, said that it seems the government is compromising on these bills by referring them to the Select Committee of Parliament, and hence delaying the much talked about economic reforms as promised by the NDA government.
3) Correction in other Asian markets is also having its toll on the Indian markets. On Tuesday, most of the stock markets in Asia were trading with a negative bias and overnight, the Wall Street also edged lower as investors fretted about Greece's precarious financial condition and slowing growth in China while energy stocks fell on weaker oil prices.
4) The rupee, which rose to a high of 63.85 against US dollar on Monday, again slipped back to a low of 64.27, taking it closer to its yearly low of 64.28 hence raising worries that foreign portfolio outflows may create a vicious cycle between rupee and domestic shares, fund managers said.
5) FIIs or foreign institutional investors being net sellers: Despite gains in the equity markets in the last two trading sessions, FIIs were net sellers in the equity markets to the tune of Rs 270 crore in the last two trading sessions. And in the last 17 trading sessions, they have sold shares worth over $2 billion or nearly Rs 14,000 crore.
Here are the latest developments:
1) The Sensex, which rose 908 points in the last two trading sessions, succumbed to profit-booking. Analysts say the gains seen in the last two trading sessions were a mere technical pullback. Technical analyst Anil Manghnani told NDTV that the Nifty has stiff resistance around 8,300-8,310 levels.
2) The crucial bills such as Goods and Service Tax amendment bill and the land acquisition bill, which were supposed to be passed in the ongoing session of Parliament, got stuck in the Rajya Sabha. A K Prabhakar, an independent market analyst, said that it seems the government is compromising on these bills by referring them to the Select Committee of Parliament, and hence delaying the much talked about economic reforms as promised by the NDA government.
3) Correction in other Asian markets is also having its toll on the Indian markets. On Tuesday, most of the stock markets in Asia were trading with a negative bias and overnight, the Wall Street also edged lower as investors fretted about Greece's precarious financial condition and slowing growth in China while energy stocks fell on weaker oil prices.
4) The rupee, which rose to a high of 63.85 against US dollar on Monday, again slipped back to a low of 64.27, taking it closer to its yearly low of 64.28 hence raising worries that foreign portfolio outflows may create a vicious cycle between rupee and domestic shares, fund managers said.
5) FIIs or foreign institutional investors being net sellers: Despite gains in the equity markets in the last two trading sessions, FIIs were net sellers in the equity markets to the tune of Rs 270 crore in the last two trading sessions. And in the last 17 trading sessions, they have sold shares worth over $2 billion or nearly Rs 14,000 crore.
Source: http://profit.ndtv.com/news/market/article-5-reasons-why-sensex-fell-over-550-points-762409
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