Share markets crash: Why stock market is down today
-
Loading... - Shyla Reddy
- 06 May 2022
- 314 Views
- 0 Like
- 0 Comment
Share market indexes Sensex and Nifty dropped around 2 per cent and were set for their worst week since November. Both equity indexes were in the red as investors fretted that fast-paced interest rate hikes to tame surging inflation would slow global economic growth.
The NSE Nifty 50 index was down 1.90 per cent or 317.20 points at 16,365.45, with all sectors trading in negative territory. The S&P BSE Sensex fell 1.83 per cent or 1,020.78 points to 54,681.45.
WHY IS SHARE MARKET DOWN?
The benchmark indexes were on track for a fourth straight weekly drop, shedding more than 6 per cent, weighed down by a surprise interest rate hike by the Reserve Bank of India, foreign fund outflows and mixed corporate earnings results, according to a Reuters report.
So far this week, foreign investors have net sold Indian equities worth $635 million, compared with $881 million offloaded in the same period last week, according to Refinitiv data.
"Domestic markets are lower on the global headlines, which are focusing more on high inflation as well as the Fed rate increase two days back," Prashanth Tapse, vice president of research at Mehta Equities, was quoted as saying by Reuters.
The Fed on Wednesday raised interest rates by half a percentage point as expected and Chair Jerome Powell explicitly ruled out a 75 basis point hike in the next policy meeting.
KEY SHARES
On the Nifty index, metal, IT, bank, auto and finance were among the top losers, declining between 2 per cent and 3 per cent.
Among individual stocks, Reliance Industries, India's most valuable company, was down 0.8 per cent. The oil-to-retail conglomerate is expected to report its quarterly results later in the day.
Cigarette-to-hotel conglomerate ITC Ltd was the top percentage gainer on the Nifty 50, climbing more than 1 per cent. Read More...
