[ad_1]
MUMBAI: A series of global and local factors – from Japan’s first interest rate hike in 17 years to fears of overvaluation in some segments of the stock market – drove the sensex fell on Tuesday even though foreign and domestic funds were net buyers.
The sensex and the Nifty opened the day’s session in the red and lost ground during the session to close near their respective intraday lows. The sensex closed at 72,012 points, down 736 points or 1%, while Nifty closed at 21,817 points, down 238 points or 1.1%.
Since its record close of 74,119 points on March 7, the sensex has plunged over 2,000 points. Tuesday’s 736-point loss was the worst since March 13, when the index sank more than 900 points. Also globally, stocks saw small moves ahead of the much-anticipated decision by the U.S. Federal Reserve that will help shape the outlook for interest rate cuts this year, Bloomberg reported.
Tuesday’s market decline was due to sales by high-net-worth domestic investors, market players said. BSE data at the end of the session showed that while domestic funds were net buyers of Rs 7,449 crore, foreign investors were also net buyers of Rs 1,421 crore. The day’s fall poorer investors by Rs 5.2 lakh crore and the market capitalization of the BSE now stands at Rs 380.6 lakh crore.
According to Vinod Nair of Geojit Financial Services, after the Bank of Japan raised interest rates, sentiment in Asian markets turned bearish, forcing the Indian market to continue its recent southward move.
“The correction has also been triggered by concerns over premium valuations and the delay of rate cuts by the US Federal Reserve due to higher than expected inflation, which is evident by the upward trend of the dollar index”. Besides, the gradual rise in crude oil prices is also affecting market sentiment, Nair said.
The rise in crude oil prices, coupled with the oil marketing companies’ (OMC) decision last week to reduce petrol and diesel prices just before the announcement of the Lok Sabha election dates, They weigh heavily on these companies. On Thursday, the OMCs reduced the prices of petrol and diesel by Rs 2 per litre. By the way, crude oil prices also started to rise around that time.
The sensex and the Nifty opened the day’s session in the red and lost ground during the session to close near their respective intraday lows. The sensex closed at 72,012 points, down 736 points or 1%, while Nifty closed at 21,817 points, down 238 points or 1.1%.
Expand
Since its record close of 74,119 points on March 7, the sensex has plunged over 2,000 points. Tuesday’s 736-point loss was the worst since March 13, when the index sank more than 900 points. Also globally, stocks saw small moves ahead of the much-anticipated decision by the U.S. Federal Reserve that will help shape the outlook for interest rate cuts this year, Bloomberg reported.
Tuesday’s market decline was due to sales by high-net-worth domestic investors, market players said. BSE data at the end of the session showed that while domestic funds were net buyers of Rs 7,449 crore, foreign investors were also net buyers of Rs 1,421 crore. The day’s fall poorer investors by Rs 5.2 lakh crore and the market capitalization of the BSE now stands at Rs 380.6 lakh crore.
According to Vinod Nair of Geojit Financial Services, after the Bank of Japan raised interest rates, sentiment in Asian markets turned bearish, forcing the Indian market to continue its recent southward move.
“The correction has also been triggered by concerns over premium valuations and the delay of rate cuts by the US Federal Reserve due to higher than expected inflation, which is evident by the upward trend of the dollar index”. Besides, the gradual rise in crude oil prices is also affecting market sentiment, Nair said.
The rise in crude oil prices, coupled with the oil marketing companies’ (OMC) decision last week to reduce petrol and diesel prices just before the announcement of the Lok Sabha election dates, They weigh heavily on these companies. On Thursday, the OMCs reduced the prices of petrol and diesel by Rs 2 per litre. By the way, crude oil prices also started to rise around that time.