From The Economic Times · Debaroti Adhikary · · 1m 50s
Stock Market Plunges as FII Outflows and Bond Yields Spook Investors
Indian stock market crashes after FII outflows and bond yields hit multi-year highs.
In brief
Indian stock market crashes after FII outflows and bond yields hit multi-year highs. Indian stock market dropped 571 points on Thursday as FII outflows and bond yields surged, wiping Rs 5 lakh crore from market capitalisation. Originally reported by The Economic Times.
Market Plunges
The Indian stock market plunged sharply on Thursday, with Sensex hitting a fresh 52-week low and Nifty breaching key technical levels.
Sensex and Nifty Drop
Sensex dropped around 571 points to close at 71,910, while Nifty 50 dropped nearly 199 points to end the session at 22,422.
Market Capitalisation Falls
The selloff wiped off Rs 5 lakh crore from the total market capitalisation of all companies listed on BSE, dragging it down below Rs 467 lakh crore.
External Factors Drive Sell-Off
The market sell-off has been driven largely by external factors, with bond yields reaching multi-year highs and crude oil prices remaining elevated.
Q2 Earnings Concerns
Q2 earnings are expected to be softer than Q1, which benefited from the lagged impact of operating costs, which may not be as available this time.
RBI Policy Next Week
Domestically, investors are also cautious ahead of Q2 results and the upcoming RBI policy next week.
Geojit Investments View
Vinod Nair, Head of Research, Geojit Investments, said the RBI, which was more open-minded, last policy would consider a shift in its stance in response to global inflationary pressures and the need to support the INR.
Market Resilience
Nevertheless, it is important to note that India's economy remains resilient and is well positioned to navigate these challenges.
Investor Strategies
Long-term investors may stay invested and use market weakness to accumulate gradually, while short-term investors could adopt a wait-and-watch approach until stronger measures from international institutions & the govt help restore stability in global financial markets.
What it means
Indian stock market dropped 571 points on Thursday as FII outflows and bond yields surged, wiping Rs 5 lakh crore from market capitalisation.
