Sensex plunges 1,200pts, Nifty dips below 24k; key reasons for market crash

Stock market crash: Indian bourses were facing a bear attack again on Thursday owing to a weakness in the global markets and after surging significantly in the first two sessions of the ongoing week

Stock market crash: After starting the day on a flattish note with a positive bias, the benchmarks showcased heightened volatility, with the BSE’s 30-stock bluechip index, Sensex dropping 1,192 points or 1.48 per cent at 79,255, from its day’s high of 80,447.40 on Thursday. Meanwhile, the NSE’s Nifty50 fell 359 points or 1.47 per cent at 23,986 level from its day’s high of 24,345.

 

Indian bourses were facing a bear attack again on Thursday owing to a weakness in the global markets and after surging significantly in the first two sessions of the ongoing week, suggested analysts. 

 

“Today’s market fall is led by US markets falling overnight and no new fresh positive triggers in the domestic markets, also the benchmarks have risen significantly in the past few days post which this seems a normal correction,” said Deepak Jasani, head of retail research at HDFC Securities.  

This week’s trend is likely to sustain in the coming weeks according to Jasani as he sees the market moving upwards in the coming weeks but with some corrections in between.

 

Meanwhile, the index heavyweights that pulled the BSE Sensex down on Thursday in terms of contribution included Infosys contributing 180 points. Other index giants included TCS (84 points), Mahindra and Mahindra (81 points), HDFC Bank (68 points) and Reliance Industries (59 points). 

 

29 out of 30 stocks were in the red territory on the BSE Sensex with Mahindra and Mahindra being the top loser, falling up to 3.29 per cent intraday and was followed by Infosys (down 3 per cent), Titan (down 2.5 per cent), Tech Mahindra (down 2.3 per cent) and TCS (down 2 per cent)

 

Among sectoral trends, most sectors trading were trading in red with Nifty IT index under severe stress falling up to 2.11 per cent.