February 25, 2018

Main » Sensex slump over 1000 points, Nifty below 10400

Sensex slump over 1000 points, Nifty below 10400

07 February 2018

The slump is said to have begun after the Union Budget was revealed on February 1, 2018, a Thursday.

Dow Jones, the benchmark share index in the U.S., lost 1,175 points on Monday - nearly 400 points more than the last biggest decline in a single day during the financial crisis of 2008. At present, the Sensex is hovering over 33,000, having plummeted over 440 points intraday and a total of 2400 over a period of three days.

Investors lost around Rs 4.95 trillion amid sell-off in the broader market on Tuesday where the benchmark tumbled 1,275 points or 3.6 per cent in opening trade.

There are a number of factors - domestic and worldwide - that are behind the index's recent (and seemingly continuing) downward turn. But bonds gained as investors sought safe havens. Domestic brokerage firm Angel Broking in a report today said that a fall in Indian is likely amid sell off in global indices. According to reports, strong prospects of the Fed hiking interest rates in the next month has led to a spike in United States bond yields, which touched 2.89%, highest level in almost four years. Investors are anxious that a return of inflation may force the Fed to raise rates quicker than expected. Potentially higher bond yields also dampened sentiments in United States markets.

Meanwhile, the White House issued a statement reportedly downplaying the stock market turbulence and pointing to lower unemployment rates and increased wages in the US.

Overseas, European and Asian stocks tanked following a sharp sell-off on Wall Street. Japan's Nikkei saw one its biggest single-day drop since 1990. Yields on 10-year U.S. Treasury paper were up at a four-year peak of 2.86 per cent today, having jumped nearly 7 basis points on Friday.

It also added, "The President's tax cuts and regulatory reforms will further enhance the United States economy and continue to increase prosperity".

All sectoral sub-indices were trading in the red on Monday morning.

The bank monetary policies around the world depend on Thursday's meeting of the European Central Bank.

That the Indian rupee has been in an uphill battle against the dollar in the last few weeks is no secret. The result was announced during market hours today, 6 February 2018.

Sensex slump over 1000 points, Nifty below 10400