Stock markets retreat from record high: 5 reasons that led to the fall

Here are five reasons that led to the equities downfall.

New Delhi: The BSE Sensex on Thursday retreated from record high by closing down 27.05 points at 33,573.22 while the NSE Nifty fell 16.70 points to 10,423.80.

During the day, the flagship Sensex touched an all-time high but lost nerve soon to close down after muted auto sales numbers as investors digested the outcome of the Federal Reserve meeting.

The tide turned when foreign portfolio investors (FPIs) bought shares worth a net Rs 1,038.31 crore yesterday. But domestic institutional investors (DIIs) gave up equities worth a net Rs 667.91 crore, as per provisional data.

Here are five reasons that led to the downfall

• Muted September quarter earnings by some blue-chip companies and lower-than-expected sales data from automakers for October with a single-digit growth made investors develop cold feet.
• Quarterly results from companies such as Tech Mahindra Ltd weighed, although losses were capped by gains in pharmaceutical shares, including Divi`s Laboratories Ltd that rose about 16 percent.
• The US central bank left interest rates on hold at the end of its two-day policy meet, but remains on track for a December hike as it cited "solid rate" of growth. The market focus now shifts to the announcement of the next Fed chair.
• As per the analysts, a widening probe by US authorities involving top drug companies following complaints of price fixing of generics was also a point of worry for the participants.
• Traders also opined that subdued factory activity also weighed on investor sentiment, but pharma's rise on FDA positivity held index from slipping much.