Sensex and Nifty Fall by Over 4%

Today, Sensex and Nifty opened after a long weekend and crashed by 4%. Previous month’s gains were lost as Sensex closed at 28265.31 losing 1203.18 points. Nifty dropped by 343.95 points closing at 8253.80 losing over 4%.

World economies struggled to gain grounds today. The Indian market also dropped in this week’s opening session as tensions between the US and China escalated. China was blamed by US President and Secretary for the spread of COVID-19 globally.

Factors that led to Crash to Sensex and NIFTY

  • US and China Tensions– Hurting the market sentiments and putting pressure on world economies, USA and China engaged themselves in yet another war of words. The US accused China of the emergence of COVID-19 Coronavirus from Wuhan laboratory, China.
  • Lockdown 3.0– The 3rd phase of lockdown started in India with the easing of restrictions amid lockdown in certain areas with precautions and guidelines. The Government assigned 319 districts under the green zone, 284 districts under the orange zone and remaining 130 districts classified as red zones with most cases. Orange and Green zones given relaxation to restart commercial activities with certain rules. On the other hand, trains, flights remain barred from operations. Lockdown 3.0 to end on 17th of May 2020.
  • Disappointing Last Quarter Figures– The last quarter, Q4 earnings were not up to the mark as the COVID-19 spread and lockdown restriction posed a great challenge for companies. Even RIL, TCS and Hindustan Unilever dipped as the market opened today. Analysts suggest that Q1 and Q2 of this financial year will be under pressure. However, Q3 can experience normal operations with activities and GDP back on track. But as compared to the previous year, GDP and economic growth to decline significantly.
  • Global Market Plummets– US stocks futures dropped by 1.7% due to a reduction in trade with China and Japan. US Dollar surged as US crude oil fell by 7%. Gold prices in the US rose as investors sought safe-haven form this situation.

Top Gainers- Sensex and Nifty

3 stocks gained in today’s market while others tanked suffering huge losses. Cipla followed by Bharti Airtel and Sun Pharma were stocks gaining 3.71%, 3.24% and 0.33% respectively.

Top Losers- Sensex and Nifty

Hindalco lost the most value today tanking 10.68% followed by ICICI Bank, Vedanta ltd that fell by 10.56% and 10.44% respectively. Other stocks that rallied losses included Bajaj Finance, HDFC, Tata Motors and IndusInd Bank dropping by around 9% approximately.

As global market suffered losses, Indian market joined to drop around 4% losing last week’s gains.

FII/DII : Sensex and NIFTY

Foreign Institutional Investors took out a total of INR 1373.98 crores from Indian Equity market amid the tension between the US and China and slow growth of the economy during this Coronavirus crisis. Stocks of value INR 5482.19 crores bought while INR 6856.17 crores valued shares sold by foreign investors.

Domestic Institutional Investors experienced a take-out of around INR 1661.61 crores from the equity market. Today, domestic investors bought stocks worth INR 3756.63 and sold shares worth 5418.24 crores in intra-day trade.

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