Share Market: Sensex, Nifty Crash

Share Market: BSE Sensex is trading around 61,200 levels, around 2,400 points lower from its life-time high of 63,583 mark. 50-stock index Nifty is also down near 1 per cent today. Nifty today opened lower and went on to hit intraday low of 18,210, which is around 680 points lower from its life-time high of 18,887 mark.

Nifty Bank index too shed near 300 points and came down at 43,115 levels, around 1,000 points lower from its record high of 44,151 mark. Except Adani Enterprises and UltraTech Cement shares, majority of the Sensex, Nifty and Bank Nifty heavy weights were trading in red zone.

After rising on Monday despite weakness in Asian markets, Dalal Street finally came under the grip of bears in early morning deals.

According to stock market experts, immediate short term reason for Indian stocks’ nosedive is Japanese government’s decision to change their bond return range that has strengthened Yes in forex market. In fact, the Bank of Japan has slightly loosened the shackles of its 10-year yield target and the announcement in this regard has already been done. Apart from this, FIIs tendency of squaring off their position ahead of the arrival of Christmas festival is other reason for negative sentiments on Dalal Street. They said that fear of recession is still looming around as US Fed’s hawkish commentary is still oscillating in the minds of market investors. However, they said that those who believe in bottom finishing, they can look at banking and capital goods stocks in current correction.

Also read: US Federal Reserve Raises Interest Rates

The rupee weakened by 11 paise to 82.73 against the US dollar in early trade on Tuesday as a sell-off in domestic equities and rising crude prices in global markets weighed on the local unit. However, a weak greenback against major rivals overseas supported the domestic currency and restricted the fall, forex traders said. At the interbank foreign exchange, the local currency opened weak at 82.69 against the dollar, then lost ground further to 82.73, registering a decline of 11 paise over its previous close. The rupee settled 13 paise higher at 82.62 against the dollar in the previous session on Monday.

Japanese Central Bank’s decision to widen its bond yield target range has come as a surprise for stock markets. This triggered over 2 per cent upward move in Yen against the USD which is highest in 5 months. It will impact many Indian companies.

Also read: Smartphone Exports Cross Rs 50k crore

Oil prices rose in early trade on Tuesday, shored up by a weaker dollar and a U.S. plan to restock its Strategic Petroleum Reserve, but gains were limited by uncertainty over the impact of rising COVID-19 cases in China, the world’s top oil importer.

Japan’s Nikkei 225 crashed by 691.31 points or 2.54 percent at 26,546.30 on this news. China’s Shanghai Composite was trading down by 19 points or 0.64 per cent at 3,087.33. Hang Seng was also down over 262 points or 1.36 per cent at 19,089.96.

Singapore-based SGX Nifty, an early indicator of movement in Nifty was trading in the red and was down 232 points or 1.25 per cent at 18,255 while Dow futures were trading at 32,480.20, down 277.30 or 0.85 per cent.