Nifty, Sensex tank more than 1%; here’s what is dragging share market today
Indian stock markets fell on Monday amid weak global cues. The S&P BSE Sensex was down 600 points or over 1.08% above 59,000 while the NSE Nifty 50 index was close to 200 points
Bank Nifty was down more than 1.5% while India VIX rose 4% and broke 19 levels. According to analysts, today's profit-booking could be due to a jump in the dollar index and sharp commentary from the US Fed.
Additionally, the minutes of the Reserve Bank of India's policy meeting signalled further interest rate hikes in the coming months, which spooked investors.
Indian stock markets are witnessing profit booking after the rally. Profit-booking can be attributed to weak global cues as the dollar index rose amid US Fed commentary.
Technically, nifty slipped from the psychological barrier of 18,000 as most momentum indicators were showing more buying," said Santosh Meena, head of research, Swastika Investmart Ltd.
Note that the dollar index is back above the 108 level, while the US 10-year yield is at 2.99 percent on concerns of a global growth slowdown and tightening of the US Federal Reserve.
Friday's trend continues. Overall, the market has seen a sharp growth of ~17% since mid-June despite poor Q1FY13 results. Forward earnings estimates for Nifty have fallen by c.