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 sentiment in early trade.
Asian markets plunged following the worst session on Wall Street for months as US President Donald Trump said the Federal Reserve had gone crazy with plans for higher interest rates.
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 overnight.Madhavi Arora, Economist, FX and Rates, Edelweiss Securities earlier this week said, We expect rupee weakness to persist, heading towards 75 plus levels against US dollar, amid difficult global and domestic environment, unless some additional assertive policy steps come through.
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 remains volatile and an EM outlier in fragile FX space.Heavy selling by FIIsSustained outflow of funds by foreign institutional investors (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 portfolio.
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.