Bears seem to have taken control of the Indian stock market on Thursday, with Sensex, the flagship index of Bombay Stock Exchange (BSE), crashing by nearly 800 points by noon.
The market crash is said to be mainly based on global cues.
Thursday’s crash is the straight sixth losing session seen by the Indian market.
The global equities have been trading in the negative zone due to concerns over US Treasury yields and the conflict in West Asia.
On the 30-share Sensex platform, almost all the indices were trading in the red, with TechM, Bajaj twins, M&M, Nestle, and Asian Paints emerging prime losers.
The top losers on the Nifty are Tech Mahindra, Adani Enterprises, M&M, Bajaj Finserv, and Bajaj Finance.
In the broader markets, the BSE Midcap and Smallcap indices dropped 1 percent each.
Sectorally, all the indices were trading in the red, with auto, capital goods, pharma, IT, metal, realty, and power down 1-2 percent each.
Market analysts said there is risk-off in global equity markets, triggered by a combination of economics and geopolitics.
“While the Israel-Gaza conflict continues to be a major headwind for markets, in the near-term, the strongest headwind for the market is the stubbornly high US bond yields,” a Mumbai-based analyst said.
In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong were quoting lower.
The US markets ended in negative territory on Wednesday.
Meanwhile, global oil benchmark Brent crude declined 0.29 percent to $89.87 a barrel.
Indian rupee slides 6 paise to 83.23 against US dollar
Indian rupee also stayed on a downward track for the third consecutive session on Thursday, depreciating by 6 paise to 83.23 against the US dollar in early trade.
Forex traders said the Indian currency was pressured due to massive selling of equities by foreign investors, and also due to firming up of crude oil prices, hovering around close to $90 a barrel amid geopolitical tensions in the Middle East.
At the interbank foreign exchange market, the local unit opened weak at 83.19 and then touched the lowest level of 83.23 against the greenback, registering a loss of 6 paise from its previous close.
This is the third day of fall in the rupee.
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