BLOODBATH ON DALAL STREET: WHY SENSEX CRASHED OVER 1,000 POINTS TODAY
Domestic markets experienced a twist of fate on Friday as benchmark indices fell sharply after a largely positive opening.
The S&P BSE Sensex plummeted 1,010 points to 73,601 at 1:56 pm, while the NSE Nifty50 fell over 250 points to 22,394.
Earlier in the day, the Nifty50 had hit a fresh record high.
The other broader market indices also fell sharply as volatility witnessed a big jump. All the Nifty sectoral indices plunged into negative territory, with heavy losses in IT, banking, and financial services.
It is worth noting that blue-chip stocks such as Reliance Industries Limited, HDFC Bank, TCS, and more also contributed to the massive slide on Dalal Street.
But what led to today's bloodbath on Dalal Street? According to experts, the sharp U-turn on Dalal Street was due to high volatility, triggered by pre-election jitters and a host of other factors.
Amit Goel, Co-Founder and Chief Global Strategist, Pace 360, said volatility in the stock market has increased over the past few weeks.
Highlighting the factors, Goel said, "This is due to a combination of both global and domestic factors. Globally, speculation surrounding the timing and magnitude of the season's first Fed rate cut, along with selling pressure from FIIs in emerging markets, plays a pivotal role."
He noted that NFP data from the US, expected later in the day, is also a factor for the heightened market volatility.
"Domestically, factors such as Q4 results announcement, pre-election result jitters, and high level of margin trading contribute significantly to the heightened market fluctuations," Goel said.
"The India VIX index has also increased significantly over the last few days. We believe volatility could rise even further as we inch closer to the 4th June election results' date," he added.
2024-05-03T08:59:51Z dg43tfdfdgfd