sensex today: Sensex plunges 400 points; 5 key factors weighing on the market

The benchmark stock indexes fell more than 1% on Monday after the sale of financial and oil and gas meters. The Sensex BSE was down about 420 points at 37,970.18 around 12:15 pm (IST), while the NSE Nifty index at 50 shares dropped 135 points to 11,453.85.

Forty-one stocks in the Nifty Index traded in red with a 3% decline in Bajaj Finance, Ultratech Cement, Indiabulls Housing Finance, Bajaj Finserv and BPCL. In contrast, HCL Tech, NTPC, Wipro, Axis Bank and Lupine grew by 0.35% to 1.45%.

Here are five factors that weigh on the market today:


Fall of the rupee
A persistent fall in the rupee has dampened market sentiment. The local currency is still weakened to reach a new low of 72.61 against the US dollar, dropping nearly 90 feet in afternoon trading Monday.

Weakening of macros
India's current account deficit (CAD) reached $ 15.8 billion in April-June in value against $ 15 billion in the same quarter of 2017-18, mainly due to a deficit commercial importance, according to data released Friday.

The sentiment was also affected by a report indicating that the total amount of the government's commitments was 79.8 million rupees at the end of June 2018, compared with 77.98 million rupees at the end of March 2018. The public debt represented 89, 3% of total outstanding. -June 2018 with an internal debt representing 83% of the shares. Nearly 24.9% of the outstanding securities had a residual maturity of less than five years.


Boiling crude
High oil prices have been an obstacle for the rupee and the bonds. India imports more than two-thirds of its crude oil requirements and any increase in world prices not only pushes importers to increase demand for dollars, but also raises inflationary concerns in their country.

Crude oil prices rose again, as US drilling for new production stagnated and the market tightened once Washington's sanctions against Iranian crude exports began in November.

The barrel of Brent was above $ 77 a barrel on international markets on Monday.

The rise in bond yields
The yield on 10-year benchmark bonds hovered around 8.11%, the highest since November 2014. As macroeconomic indicators weaken, bond yields rise, causing prices to fall. Investors then tend to look for more returns on bonds to offset the risks involved.

Global Down Bearing Indices
Asian peers mostly traded lower after US President Donald Trump said he plans to adopt tariffs on an additional $ 267 billion worth of Chinese goods, increasing tensions between the two countries. major world economies. Development has overshadowed a solid US employment report, which has kept the US Federal Reserve on track to raise interest rates. Hang Seng and Shanghai Composite recorded a decline of more than 1% in late trading.