Share Market Crash: Here Are The Key Factors Behind Disturbed Sensex, Nifty
Writer: Shiva Chaudhary
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
India, 14 Feb 2022 11:56 AM GMT
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While he is a massive sports fanatic, his interest also lies in mainstream news and nitpicking trending and less talked about everyday issues.
Creatives : Shiva Chaudhary
A post-graduate in Journalism and Mass Communication with relevant skills, specialising in content editing & writing. I believe in the precise dissemination of information based on facts to the public.
The NSE Nifty 50 index dropped 2.14 per cent, which is 71.60 points to 17,003.15, while the S&P BSE Sensex fell 1.9 per cent to 57,023.63.
In early morning trade on Monday, the market fell approximately 2 per cent as Indian shares joined a global sell-off prompted by escalating tensions between Russia and the West over Ukraine and as banking stocks extended their decline.
The NSE Nifty 50 index dropped 2.14 per cent, which is 71.60 points to 17,003.15, while the S&P BSE Sensex fell 1.9 per cent to 57,023.63. The Nifty volatility index bounced as much as 21.61 per cent. It exhibits the degree of volatility traders expect over the next 30 days.
Stock Market Downfall
According to Reuters, Saurab Jain, the assistant vice president at SMC Securities, said, "The correction in domestic markets is part of the global phenomenon. Foreign institutional investors are selling due to a high inflationary environment and tensions between Russia and Ukraine. That's giving jitters to the market," reported India Today.
Crude Oil Prices
Investors will be keeping an eagle eye on India's January retail inflation data, due out later in the day. Higher crude oil price is another primary macro concern for India. V K Vijayakumar, the chief investment strategist at Geojit Financial Services, said that if the crude oil price remains at $95/barrel levels for an extended period, continuing the accommodative monetary stance would be difficult.
Other Key Developments
The Nifty banking index dropped 2.9 per cent, while the public sector banking index fell 3.4 per cent.
A police complaint has been filed against ABG Shipyard Ltd and its promoters by India's federal investigation agency. Accusing it of defrauding lenders of 228.42 billion rupees.
State-run Life Insurance Corp of India filed draft papers with the market regulator on Sunday to sell 5 per cent of its shares to potentially raise nearly $8 billion, impeding the biggest IPO in Asia's third-largest economy by a considerable margin.
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