Sensex and Nifty plunged over 1% in the afternoon on Monday. While BSE Sensex tanked over 400 points to close at 37,922.17, Nifty ended down 151 points to 11,438.10 followed by heavy selling on counters of finance, oil, and gas.
Forty-Two stocks in Nifty were trading in red with Bajaj Finance, Ultratech Cement, Indiabulls Housing Finance, Bajaj Finserv, and BPCL were the notable names. In contrast, Wipro, Axis Bank, and Lupin were the highest gainers.
Key Factors that pulled the domestic equity market down
- Depreciating Currency- A constant fall in the value of rupee hit a low of 72.61
- High crude oil prices- Crude price hiked further, raising inflation concerns in India.
- More returns inborn yields- Highest benchmark (8.11%) since November 2014.
- Widened current account deficit- CAD widened to the most in 5 years.
- Weak global cues-US President threatens tariffs on Chinese imports.