INSUBCONTINENT EXCLUSIVE:
Stocks fell off the cliff today right at the start as benchmark indices plunged over 2 per cent on a deepening global selloff.
The BSE
Sensex plunged over 1,000 points to 33,723.53 while the 50-share NSE Nifty went below 10,200-mark.
As many as 45 stocks on the Nifty index
were trading in the red, with Bharti Infratel, Infosys, TCS, HCL Technologies and Wipro falling up to 3 per cent
However, Bajaj Finserv, Bajaj Finance, Zee Entertainment, Eicher Motors and Axis Bank were up between 6 per cent and 10 per cent.
Here are
the key factors that pulled the domestic equity market down on Thursday.
Weak global cuesHeavy losses in the US market affected market
Shanghai shares touched their lowest since late 2014 while China blue chips slid 3 per cent
US stocks took a hit on Wednesday as investors, fearful that rising interest rates and trade tensions could hurt company profits, ramped up
their selling of high-flying technology and Internet stocks
The Dow Jones Industrial Average index slipped 831 points, its worst loss in eight months.
Rupee hurtling towards 75The rupee on Thursday
inched closer to 74.50 against the dollar on account of buying in the American currency by banks and exporters
After opening 10 paise down at 74.31 against dollar, the local currency hit its fresh record low of 74.46 against dollar
The dollar remained steady against a basket of currencies after weary investors drove US stocks to their worst fall in nearly eight months
heading towards 75 plus levels against US dollar, amid difficult global and domestic environment, unless some additional assertive policy
Even as we see a less probability of any unconventional policy measures amid comfortable FX war chest, we do not fully rule it out if INR
(FII) continued to pressured domestic equity markets
After selling shares worth Rs 10,824 crore in September, FIIs sold shares net of Rs 14,097 in just seven trading sessions so far in October
Himanshu Srivastava, senior analyst manager research at Morningstar told PTI that for FPIs, India is just another investment in their
They continuously evaluate India against other comparable markets and see what investment proposition it has to offer
They will not hesitate in trimming their exposure to India if it does not fare well on the risk-reward profile.
"Hence, due to deteriorating
macro factors and increasing tension over global trade war, FPIs have been trimming exposure to India over the last few months," he added.
