Sensex crashes over 1,300 points, Nifty 50 Below 17,200
In a latest report by sources the fall has been attributed to the uncertainty around the Monetary Policy Decision of The Reserve Bank of India.
Indian share market was experiencing a sharp nosedive on Monday, February 7, 2022. BSE Sensex was down over 1,300 points and was trading at 57,338 as of 2 PM. Nifty50, on the other hand, was down over 350 points, was trading below 17,200. The fall was led by HDFC Bank, Bajaj Finance and Larsen & Toubro.
In a latest report by sources the fall has been attributed to the uncertainty around the Monetary Policy Decision of The Reserve Bank of India. The MPC meeting was postponed due to the sad demise of singing legend, Lata Mangeshkar.
Another reason is the rising Brent crude oil prices. The oil prices touched $93 per barrel on the backdrop of rising geopolitical tensions. The Federal Reserve has signalled a tighter monetary policy in March 2022. This has led to Foreign Institutional Investors (FIIs) leaving the Indian share markets.
According to the report, if the Fed takes a hawkish stance, it can lead to a further correction in the stock markets across the globe. But the Fed does not have many options. The inflations in the USA is highest in over four decades.
The fall in NIFTY50, according to data on nseindia.com, can be attributed to a weak performance by Nifty Financial Services, Nifty Bank and Nifty FMCG.
In Financial Services, HDFC Bank and Bajaj Finance are the top drags. HDFC Life is nearing its 52-week low. In Bank stocks, HDFC Bank is down around 4 per cent and Kotak Mahindra, RBL, ICICI and IndusInd Banks are down over 2 per cent.
In FMCG stocks, Radico, Britannia, Tata Consumer Products and UBL are down 3 per cent. In Nifty50, only 7 stocks were advancing and 43 were declining. ONGC and Power Grid were the top gainers.
In Sensex, only 5 stocks were advancing and 25 stocks were declining. Power grid and SBI were top gainers.
