Mumbai: Fears of the US Fed meeting, fall of the rupee and negative signals from the global markets have put the domestic equity markets under severe selling pressure. As a result, the markets ended the weekend with heavy losses on Friday. The BSE Sensex fell by 1020.80 points (1.73 percent) to close at 58,098.92 points due to selling pressure. The NSE Nifty closed down 302.45 points, or 1.72 percent, at 17,327.35 points. The Nifty Bank index closed down 1084 points or 2.67 per cent at 39,546.25. As a result, the markets lost for three consecutive sessions. Nifty PSU Bank lost the most by 3.97 percent, while Nifty Pharma fell the least by 0.02 percent. Powergrid Corp fell the most by 7.97 percent, followed by Mahindra and Mahindra, SBI, Bajaj Finserv, Bajaj Finance, NTPC, HDFC and IndusInd Bank stocks. While only Sunpharma, Tata Steel and ITC shares ended in the green. Meanwhile, the wealth of Rs. 4.9 lakh crore investors has been wiped out due to the huge fall in the markets. The market capitalization of BSE listed companies fell to Rs 276.6 lakh crore.
The reasons that led to the fall of the markets..
US Fed fears
The background of the meeting of the US central bank with the US Federal Reserve Bank is worrying the global markets. Expectations that a hike in interest rates by 75 basis points is certain are causing this disturbance. This development weakened the sentiment of investors and they rushed to sell.
Pressure on the rupee
The domestic currency, the rupee, fell to a lifetime low. The dollar fell to an intraday low of 81.23 on Friday. This factor has also had a significant impact on the domestic equity markets. Depreciation of rupee will not attract FIIs at all.
Profits on bonds to the max
US Treasury 10-year bond yields rose to their highest level since 2011 at 3.7180 percent. Two-year bond yields rose to a 15-year high of 4.1630 percent. As far as India is concerned, the 10-year government bond yield is Rs.7.3821 per cent, which has increased by 20 basis points in the last seven sessions.
Global markets deal..
Most of the global markets ended in losses in the wake of the US Fed meeting. The Dow Jones ended up 0.4 percent and the Nasdaq 1.4 percent. Other Asian markets also fell for the third day in a row.
Other reasons are….
FIIs (Foreign Institutional Investors) are withdrawing their investments from the domestic markets in large numbers. Even if Rs. 51 thousand crores were invested in August, the situation is not seen in September. Disinvestment is favored. On the other hand, the RBI meeting which will start from September 30 is also disturbing the investors. There are expectations that the increase in interest rates is certain. Technical factors also hurt market sentiment.