Sensex falls 1000 points in 2 days: Why did stock market crash today? - Hindustan Times
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Sensex falls 1000 points in 2 days: Why did stock market crash today?

Feb 22, 2024 12:49 PM IST

Stock Market Update today: Until February 20, Sensex had climbed 1,500 points in five sessions while Nifty had jumped over 500 points.

Stock Market Update today: Indian markets witnessed losses as Sensex dropped 542 points intraday to hit a low of 72,081 today (February 22). The benchmark index ended little over 400 points lower on February 21. The Nifty50 slipped below the 22,000-mark to a low of 21,875. Until February 20, Sensex had climbed 1,500 points in five sessions while Nifty had jumped over 500 points.

Stock Market Update today: A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)
Stock Market Update today: A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai.(Reuters)

Read more: Stock market seen rising 9% in 2024 with new highs in June: analysts poll

However, according to analysts polled by Reuters, India's stock market may surge to new highs by the end of June and gain nearly 9% in 2024 while a correction in the next three months was unlikely, they said.

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Here are the key reasons for the downfall:

  1. HDFC Bank, Airtel, SBI slip: Heavyweights across sectors fell on Thursday led- Bharti Airtel (down 2 per cent), Bajaj Finance, (1.7 per cent), HDFC Bank (1.5 per cent), HUL (1.46 per cent), State Bank off India (1.4 per cent), Kotak Mahindra Bank (1.3 per cent), and Bajaj Finserv (1 per cent).
  2. US Fed minutes: The US Federal Reserve showed no urgency to bring to rate cuts amid concerns of "upside risks" to inflation begin to emerge, as per the latest monetary policy meeting. This means that the Fed will not bring a sooner rate cut as members expressed “uncertainty associated with how long a restrictive monetary policy stance would need to be maintained”, Reuters reported. This resulted in yields on Government bonds around 10-basis points higher today to 7.056 per cent.
  3. Technical levels: Owing to Wednesday's selling the benchmark indices formed bearish candles on the daily charts. This indicates further weakness from current levels below 21,950/72,350.

 

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