The Hush Post: The Sensex recuperated partially by Tuesday afternoon with the BSE Sensex closing at 34,195 levels. This is down 561 points. The 30-share index recovered about 600 points in intra-day deals after opening 1,227 points lower. The NSE Nifty closed at 10,498 losing 168 points.
Some of the reasons why Sensex, Nifty went down:
- Following sharp losses in other Asian markets owing to a record-loss on Wall Street after investor worries peaked over rising US borrowing costs, market sentiment looked sombre here as well. Asian shares tumbled after Wall Street went through its biggest decline since 2011.
- Investors were wary ahead of the RBI policy meet this Wednesday under the impression that repo rate could go up amid inflation concerns. Repo rate is the rate at which RBI lends short-term money to banks.
- The rupee went down 29 paise to 64.36 against the dollar to dampen the sentiment adding to the concern ahead of RBI monetary policy meeting which begins on Tuesday.
- Investors lost a whopping over Rs 9 lakh crore in three days, with the never-ending stock-market rout over budget proposals to tax equities.
- Strong selling pressure dragged down the Sensex and Nifty components.