Five reasons why Sensex tanked 453 points today

Equity fund managers, Stock markets, Indian stocks

The S&P BSE Sensex ended at 33,149, down 453 points while the broader Nifty50 index settled at 1,226, down 134 points


LATEST NEWS : The benchmark indices logged the biggest single day fall in 2 months on Thursday after the Apr-Oct fiscal deficit data, coming in at 96% of the budgeted target for FY18, unnerved investors. The derivatives expiry of November series also hurt sentiment, while investors awaited the September quarter GDP data due later in the day.

The S&P BSE Sensex ended at 33,149, down 453 points while the broader Nifty50 index settled at 1,226, down 134 points.


"The market started off on a weak note and saw sharp sell-off in frontline index towards the end of the trading session ahead of the GDP data. Negative trend in Asian markets and domestic fiscal deficit data impacted sentiments. However, the broader markets indices outperformed," said Jayant Manglik, President Retail Sales, Religare Securities.

"While the overall sentiment remains positive, some profit-booking cannot be ruled out at higher levels. Thus corrections should be used as a buying opportunity. The market would react to the Q2 GDP data scheduled after market hours. Traders should avoid over leveraging until keys events like the RBI policy and US Fed meet end in the next couple of weeks," he added.

We have compiled five reasons that may have impacted market sentiment today:

1) Fiscal deficit

The markets extended losses soon after the data showed that the country's fiscal deficit in the first seven months of the financial year has exceeded 96 per cent of the government's estimates for full 2017-18. At the end of September this year, the fiscal deficit had stood at 91.3 per cent of the full-year target.

The fiscal deficit during the April-October period of this year stood at Rs 5.25 lakh crore, compared with Rs 4.2 lakh crore in the same period a year earlier, official data released by the Controller General of Accounts (CGA) showed.

The data renewed fears that the government may fail to achieve its fiscal deficit target of 3.2% of GDP for FY18.
ALSO READ THIS : Q2 GDP LIVE Updates: GDP growth at 6.3% vs 7.5% YoY

Comments

Post a Comment

Popular posts from this blog

Tigor launched at Rs 4.7 lakh: Tata eyes a seat in Swift Dzire's market

Image
It comes in four variants in the price range of Rs 4.7 lakh to Rs 6.19 lakh Upping the ante in the crowded compact sedan category,  Tata Motors  on Wednesday launched Tata Tigor , its third product in the tax-efficient sub-four metre sedan segment. The biggest selling point for Tigor is its aggressive pricing. At Rs 4.7 lakh for the base petrol variant, Tigor is now the cheapest compact sedan in the country and even undercuts Tata’s existing models. For example, the largest-selling car in the segment - Swift Dzire - starts at Rs 5.27 lakh, while the base petrol version of Indigo CS, from the Tata stable, is priced at Rs 5.03 lakh. Besides Indigo CS, Tata Motors also sells the Zest in the segment, but has not been able to break the dominance of Maruti Suzuki’s Swift Dzire in the category. The compact sedan and hatchback category, accounted for over 40% of car sales in January 2017, at over 114,000 units. Maruti accounted for 56,000 cars in the category, with Swift D...
Read more

Xiaomi Redmi 4 goes on sale at 12 on Amazon: Here's all you need to know

Image
The Redmi 4 is a capable smartphone with a perfect screen size and resolution. Watch hands-on review Xiaomi's latest budget offering, the Xiaomi Redmi 4 , is going on sale at 12 noon on Tuesday, exclusively on Amazon India. In the first flash sale that took place on May 23, the smartphone had seen a huge interest from buyers and registered a record sales number of a whopping 250,000 units within the first eight minutes. According to Amazon.in, the Xiaomi Redmi 4 had recorded more than 10 million hits per minute on the site, after having received some 2.3 million ‘notify me’ alerts from customers since the launch announcement on May 16. Read this: Strike today: Chemists down shutters across India, protest e-platform plan The dual-sim budget smartphone with VoLTE capabilities is the latest offering from Xiaomi and offers an all-round performance. The Xiaomi Redmi 4 smartphone is available in three storage and RAM options – 16GB/2GB, 32GB/3GB and 64GB/4GB -- which ...
Read more

$500 bn Saudi mega-city to be listed alongside Aramco, says Crown Prince

Image
The 26,500-square km business and industrial zone, named NEOM, will extend into Jordan and Egypt LATEST NEWS :  The $500 billion mega-city planned by Saudi Arabia will be floated on financial markets alongside oil giant Saudi Aramco as part of the kingdom's drive to diversify away from oil, the crown prince told Reuters in an interview late on Wednesday. The 26,500-square km (10,230-square mile) business and industrial zone, named NEOM, will extend into Jordan and Egypt. It was unveiled on Tuesday at a three-day international investment conference. The surprise announcement is the latest - and most extraordinary - in a slate of privatisation programmes led by the floating of oil giant Saudi Aramco. The sales are designed to boost the Saudi economy and create jobs for millions of young people. "The first capitalist city in the world ... this is the unique thing that will be revolutionary," Crown Prince Mohammed bin Salman said. "Without a do...
Read more