Sensex nosedives 600 pts; these 5 key points made for a very a poor day, cost you plenty

Looking at Sensex's drop today, would surely bring back to memory recent bear market that had the markets in a bear-like grip as recently as September, 2018. Well, how low this index will continue to fall will be keenly watched. For now, let's understand 5 key factors that dragged Sensex lower by a whopping 600 points.

There was massive bloodbath on Dalal Street especially in benchmark index Sensex, which lost over 617 points alone in today's trading session. Image source: PTI

There was massive bloodbath on Dalal Street especially in benchmark index Sensex, which lost over 617 points alone in today's trading session. However, the Sensex finished at 35,312.13, down by 572.28 points or 1.59%. Following a similar trend, the Nifty 50 closed at 10,601.15, lower by 181.75 points or 1.69%. There were a host of reasons as to why investors lost massively in today's trading session that ended in virtually a panic mode. A few of the reasons can be outflows of foreign funds, weak rupee and uncertainty over the outcome of Assembly elections that went on to subdue investor sentiments. Add to that the state of global markets and crude oil prices that sparked negative sentiments on a massive scale.

Looking at Sensex's drop today, would surely bring back to memory recent bear market that had the markets in a bear-like grip as recently as September, 2018. Well, how low this index will continue to fall will be keenly watched. For now, let's understand 5 key factors that dragged Sensex lower by a whopping 600 points.

Large Cap losers!

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Almost every large cap stock tumbled on Sensex today, except Sun Pharma, which has already taken a sever beating since past two days.

Losers list involved Maruti Suzuki taking the lead as the company ended at Rs 7209.70, down by 4.63%, followed by Tata Motors at Rs 162.40 per piece below 4.02%, Yes Bank at Rs 168.30 per piece, lower by 3.08%, Adani Ports at Rs 363.90 per piece, down 2.74% and Reliance Industries at Rs 1123.45 per piece, below 2.72%.

Other companies like Asian Paints, ONGC, Kotak Mahindra Bank, HUL, Axis Bank, IndusInd Bank, Infosys, Coal India, SBI, Vedanta, Bajaj Auto and HDFC tumbled in the range of 1% to 2.50%.

Heavy selling in midcap and small cap stocks!

Both small cap and mid cap stocks were least favorite of investors in today's trading session. The BSE SmallCap ended at 14,143.30 giving away 194.60 points or 1.36%, whereas the BSE MidCap finished at 14,684.23 lower by 229.37 points or 1.54%.

No love for banking, auto stocks!

Almost every sector saw selling pressure today, however, the loss in auto and banking stocks was breathtaking.

The S&P BSE Auto index finished at 19,824.18 down by 457.98 points or 2.26%. There were no gainers in this sector, and companies like Maruti, TVS Motor, Balkrishna Industries, Tata Motors, Eicher Motors, Ashok Leyland, Bajaj Auto and Apollo Tyres were on hotbed ending in negative ranging from 1% to 5%.

As for the S&P BSE BANKEX completed at 29,175.64 losing about 424.35 points or 1.43%.

In banking, the stocks that took the most beating were PNB, Yes Bank, Kotak Bank, Axis Bank, BOB, InduInd Bank, SBI and ICICI Bank finishing in red between 1% to 4%.

Rupee, crude oil!

The Indian rupee dropped by 36 paise at 70.82 against the US benchmark dollar index at interbank forex market. However, the domestic currency clocked an intra-day low of 71 versus dollar due to strengthening American currency and weak domestic equity market.

Meanwhile, the international crude oil slipped by nearly 5% on Thursday, as reports suggested that OPEC signaled that they may agree to a smaller output cut than expected and as concern over the economic impact of trade tensions hit global stocks.

The Organisation of the Petroleum Exporting Countries (OPEC) is meeting in Vienna to decide its production policy in coordination with non-OPEC producers including Russia, Oman and Kazakhstan, as per Reuters.

Global Markets!

According to Reuters report, global stock markets slumped for a third day running on Thursday as the arrest of a top executive of Chinese tech giant Huawei in Canada for extradition to the United States fed fears of fresh tensions between the two economic superpowers.

The report added, Asian markets took a beating. Huawei is not listed but China`s second-largest telecom equipment maker ZTE Corp sank 9 percent in Hong Kong while most of the nearby national bourses lost at least 2 percent.

Reportedly, Europe slumped too in early trading as 3 percent falls for the tech sector, miners and also carmakers kicked London, Frankfurt and Paris to two-year lows.

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