Sensex bleeds over 1,700 points: Top 5 reasons behind Monday's crash

Analysts believe that the persistent FII selloff, fear of aggressive rate hikes by the US Federal Reserve (US Fed) and weaker rupee was dampening investors' sentiment.

Bears tightened grip on the Indian equity markets on Monday as fears of aggressive interest rate hikes spooked investors. May consumer inflation hit a fresh 40-year high of 8.6 per cent in the US, while India CPI inflation in May is expected to stay above 7 per cent.

Given this, the BSE S&P Sensex tumbled over 1,700 points to 52,553 levels, while the Nifty50 broke below 15,700 levels on Monday, June 13. Broader markets, too, entered the bearish zone as Nifty Midcap 100 and Nifty Smallcap 100 sunk up to 4 per cent in trade.
 

All sectors bled in