Now Reading: Sensex crashes 600 points, investors lose Rs 3 lakh crore
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Sensex crashes 600 points, investors lose Rs 3 lakh crore
The Indian stock market fell for the second straight session on Wednesday, with the Sensex dropping over 650 points to 77,498 and the Nifty declining more than 200 points to 24,266. Investors…
The Story in Brief
The Indian stock market fell for the second straight session on Wednesday, with the Sensex dropping over 650 points to 77,498 and the Nifty declining more than 200 points to 24,266. Investors lost Rs 3 lakh crore as the market capitalisation of BSE-listed firms fell to Rs 490 lakh crore, reports Livemint.
Key factors behind the selloff include uncertainty over the Strait of Hormuz reopening and a US-Iran peace deal, elevated oil prices near $90 a barrel, and caution ahead of US and Indian inflation data due later today. Profit-booking across sectors and technical support levels around 24,250 on the Nifty also weighed on sentiment.
The Indian Opinion
The market rout is being blamed on Middle East tensions and oil prices, but that is a convenient half-truth. Indian investors are also pricing in the risk that the Reserve Bank of India may have to raise rates if oil-driven inflation persists. The real test will be the July CPI print due later today, if Indian inflation stays near 4.5 per cent without breaching the RBI's upper tolerance band, the rate-hike panic may ease. If it crosses 5 per cent, expect more selling.
Source: livemint.com
This story was synthesised by AI from the source linked above.
