Sensex, Nifty see sudden sell-off: Factors that led to market crash today

sensex, nifty see sudden sell-off: factors that led to market crash today

Sensex, Nifty see sudden sell-off: Factors that led to market crash today

The Indian market crashed in the afternoon session today. Sensex tumbled 1130 pts to 73,481 and Nifty plunged 296 pts to 22,351. All 19 BSE sectoral indices were trading in the red. Market cap of BSE-listed firms fell to Rs 404.48 lakh crore. Bharti Airtel, Reliance, L&T, Maruti Suzuki, Nestle India and Tata Motors were the top Sensex losers falling up to 3.37% in the afternoon session. Bajaj Twins were the only Sensex gainers, rising up to 1.8 per cent. India VIX, fear index, surged 11.6% to 15.01-level.

Market breadth was negative with 1267 stocks rising against 2516 stocks falling on BSE. 117 shares were unchanged.

Here’s a look at four factors behind the market crash today.

1. Profit-booking at record high

Nifty hit a fresh record high of 22794 in early deals on Friday. Sensex too approached its all time high of 75,124 reached on April 9 thi9s year. The 30 stock index rose to an intraday high of 75,095 in the morning session. With Nifty hitting record high, traders and investors chose to take money off their tables, which led to across-the-board sell off in the stock market.

2. Indian market outperformed global peers

The Indian market has outperformed its global peers in the last one year.  While global market cap increased 11% ($11.4 t), whereas India’s market cap surged 44% during the same period, said a report by Motilal Oswal.

3. High valuations

The Indian indices are trading at high valuations. The Nifty’s P/E is now near its historical average, while P/B has crossed the historical averages. The Nifty is trading at a 12-month forward P/E ratio of 19.7x, near its LPA of 20.3x (3% discount). Conversely, the P/B ratio of 3.2x represents a 15% premium to its historical average of 2.8x, said the report by Motilal Oswal.

4. Capital goods, banking, auto shares top losers

BSE capital goods, banking and auto indices slipped 771 pts, 380 pts and 441 pts, respectively. The widespread selling across other sectors also contributed to losses in the market.

Previous session

Domestic benchmarks ended higher on Thursday. Nifty closed 43 points or 0.19% higher at 22,648 level. Sensex rose 128 points to end at 74,611. India VIX, fear index, surged 4.43% to 13.44-level.

Watch Live TV in English

Watch Live TV in Hindi

OTHER NEWS

18 minutes ago

The Moff is back! As Doctor Who writer Steven Moffat returns to the show with a VERY tense new episode - a look at his most iconic moments after penning stories for FIVE Time Lords

19 minutes ago

Opposition’s proposed migration rates are still ‘too high’ to ease the housing crisis

19 minutes ago

Trump, Still Stuck in 2020, Recycles His Tired Drug Test Demand

19 minutes ago

Yemen's Houthi rebels claim shooting down another US MQ-9 Reaper drone as footage shows wreckage

20 minutes ago

Manchester United v Chelsea LIVE: WSL team news, line-ups and Aston Villa v Man City updates

20 minutes ago

David Moyes says he will leave West Ham ‘in good spirits’

20 minutes ago

This ain’t the last fight – Ange Postecoglou ready for bigger battles with Spurs

20 minutes ago

Britain set for 22C temperatures from today amid 'warm sunny spells'

20 minutes ago

REVIEW: ‘A Condition Called Love’ Episode 7 — “My First Confession”

20 minutes ago

'Major mistake RTÉ' Anger over end of Operation Transformation

21 minutes ago

The Woman in Black review – a playfully meta ghost romp with heavy-handed jump scares

21 minutes ago

Duchene scores winner in 2nd OT, Stars into conference final with 2-1 win over Avs

22 minutes ago

Jeremy Renner Recalls Falling Asleep Filming ‘Mayor of Kingstown' After Accident: "Worked Me Too Hard"

22 minutes ago

7 Big Names To Miss The Cut At The PGA Championship

22 minutes ago

Taylor Swift reignited feud with Kim Kardashian in her latest album, but the pair have a lot of friends in common, from Lana del Rey to Gigi Hadid and Ice Spice - so, will they be forced to take sides?

22 minutes ago

I'm an American man living in the UK... here are THREE things I find weird about your country

22 minutes ago

LIZ JONES: The reason why I used to love Diana but now I'm Team Camilla...and it's not what you think!

22 minutes ago

After Meghan Markle appears in another 'bridal' white gown...can you guess which one is the ACTUAL wedding dress?

22 minutes ago

Father and daughter tourists are attacked by 'Palestine supporter' who saw them removing an anti-Israel sticker from a wall at Belgian train station

22 minutes ago

Taylor Swift reignited feud with Kim Kardashian in her latest album, but the pair have a lot of friends in common, from Lana del Rey to Gigi Hadid and Ice Spice - so, will they be forced to take sides?

22 minutes ago

Top Hunk! Tom Cruise, 61, proved he's still got it with THAT shirtless snap - so which other mature stars have maintained their muscles?

25 minutes ago

Stoneage Romeos at 40: no other Australian album brings a smile like the Hoodoo Gurus’ legendary debut

25 minutes ago

In the running: Is marathon man Edwards finally on track to crack Origin?

25 minutes ago

Everything To Know About BluePrint Crate Engines

25 minutes ago

India will become leading global player If Modi retains power: Jaishankar

25 minutes ago

Parker facing extended Swans exile after hospitalising VFL opponent

25 minutes ago

The costs of paying a living wage

25 minutes ago

This ex-Googler designed a heat pump you’ll actually want in your home

25 minutes ago

Southampton one step from Premier League return as Russell Martin sets sights on unlikely reunion

26 minutes ago

Former West Coast Eagles AFL star Luke Shuey celebrates huge life milestone with partner Dani

29 minutes ago

Studiocanal Rolls Out German Trilogy ‘Woodwalkers’; Execs Talk Ambitions For New Franchise – Cannes Market

31 minutes ago

Barbie director Greta Gerwig dazzles in black velvet gown as she joins stars at the Chopard Trophy dinner during 77th Cannes Film Festival

31 minutes ago

Netflix fans blast new rom-com the 'worst movie of the year' after 'weird' ending leaves them furious

31 minutes ago

Meghan Markle's path to the White House (and why Donald Trump could be an unlikely inspiration): Step-by-step guide to how Duchess of Sussex could use quasi-royal Nigerian tour as spring board for presidential bid

32 minutes ago

Fifa trials tennis-style VAR reviews in youth football

32 minutes ago

Returning big guns can help Leinster end Ulster's winning run

32 minutes ago

Rays' Tyler Alexander comes within 5 outs of perfect game against Blue Jays

32 minutes ago

Inside UK village abandoned a century ago with overgrown ruins and its own steam engine

33 minutes ago

Longevity focus should be on good health not just lifespan, Saudi health chief says

33 minutes ago

Wladimir Klitschko: Fury vs Usyk puts Ukraine on the map

Kênh khám phá trải nghiệm của giới trẻ, thế giới du lịch