Market meltdown: Here is why the Sensex crashed by 699 points!
The Indian stock market on Friday crashed with Sensex plunging 699 points, the most single-day fall in 9 months and the lowest closing in 4 months.
Zee Media Bureau
New Delhi: The Indian stock market on Friday crashed with Sensex plunging 699 points, the most single-day fall in 9 months and the lowest closing in 4 months.
The NSE Nifty also dropped 229.45 points to end at over four-month low of 8,296.30.
So, what really happened and why the markets crashed?
Here are some points to explain the meltdown in the market.
- Fear of Donald Trump policies: Investors fear that US President-elect Donald Trump could plan huge spending policies which would be inflationary and lead to the Fed hiking rates thus denting the emerging markets.
- SBI Q2 result: India's largest lender on Friday reported a 99.6 percent dip in its net profit for the second quarter ending September 30. Following this, the lender's share plunged by 3.09 percent. This, combined with weak earnings of other bluechip companies, led to the fall in the market.
- Weak Rupee: The Indian rupee crashed by 62 paise against the US dollar on Friday, its biggest single-day fall of the year. It ended the day at 67.25 per dollar -- the weakest closing since July 26 when it had closed at 67.27.
- FPIs: After selling shares worth Rs 733.49 crore (as per provisional data) on Thursday, Foreign portfolio investors (FPIs) continued their continued their selling spree on Friday and sold shares worth Rs 1,493.27 crore today, provisional bourses data showed.