At the end of day's trade, Sensex closed below 37,000 levels and NSE Nifty closed at 11,980 levels losing 138 points
BSE Sensex slumped 462 points or 1.2% on Thursday after heavy selling in the markets due to US Federal Reserve's decision to cut interest rate.
At the end of day's trade, Sensex closed below 37,000 points and NSE Nifty closed at 10,980, losing 138 points. Even the Bank Nifty index fell by 508 points and closed at 28,367 levels.
Speaking to ZeeBiz.com, Simi Bhaumik, a SEBI registered technical equity analyst said, "The market seems bearish as it has broken the yesterday close of 10,999 and sustained below this. Now, one can expect a further 40 to 100 points correction at Nifty-50 index. In BAnk Nifty, 28,450 was major support and since this level has also been broken we can now expect the bank Nifty to go down further 200-250 points."
At the National Stock Exchange, all sectoral indices were in the red with Nifty media down by 2.9%, metal by 2.8%, PSU bank by 2% and pharma by 1.8%. Among stocks, Coffee Day Enterprises plunged another 10% for the third day in a row and traded at Rs 110.95 per share, a day after Cafe Coffee Day founder VG Siddhartha's body was found near the Netravathi river in Mangaluru.
The market experts have listed a few of the reasons for this big fallout in the benchmark. One of the reason is, the US Federal Reserve has reduced the interest rate by 0.25%, to range of 2-2.5%. After the cut, stocks on Wall Street fell sharply as investors responded that this reduction is enough to boost the US economy.
In July, Foreign Portfolio Investors (FPIs) pulled out Rs 16,000 crore from the market as they did not receive any major relief from the government on surcharge. Even the auto industry is facing hard times as the industry sharp decline in car sales in the month of July. The country's largest carmaker Maruti Suzuki reported a dip of 33.5% in total sales, whereas, Mahindra & Mahindra witnessed a decline of 15%. As per a recent report, Domestic sales declined by 36.3% at 98,210 units last month as against 1,54,150 units in the year-ago month.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Photo: PTI")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}