Indian equities witnessed a sharp selloff in the intraday trade on February 26 which dragged the benchmark Sensex lower by more than 1,600 points and made the Nifty go below 14,650.
Banking and financial stocks led the fall as the Nifty Bank, Private Bank, PSU Bank and Financial Services indices all fell up to 4 percent.
As per the Money Control Research data, they have specified 5 major key reasons for global sell off:
Rising Bond Yield
Rising bond yields seem to have eroded investor interest in riskier equities. Bond market cues often reflect in equity markets. After a bull run, the stock market has corrected in recent days, with both the Sensex and the Nifty falling from record highs.
Weak global cues
Most Asian markets traded lower after Wall Street’s main indexes tumbled, following a steep rise in benchmark US Treasury yields.
Caution ahead of GDP data
The NSO (National Statistical Office) will release gross domestic product (GDP) growth estimates for the third quarter (October-December) 2020-21 later today.
Many analysts have placed high chances on India’s real GDP growing at more than 0 percent in October-December 2020, marking a return to a positive trajectory after two-quarters of a deep slide.
Geopolitical tensions
Rising geopolitical tension also hit market sentiment globally. As reported by Reuters, “US President Biden on Thursday directed US military airstrikes in eastern Syria against belonging to what the Pentagon said were Iran-backed militia, in a calibrated response to recent rocket attacks against US targets in Iraq.”
COVID-19 remains a concern
With vaccination picking pace, Covid-19 is expected to come under control in the coming months but the pandemic remains an overhang on the market.
Today is the 338th day since India implemented a nationwide lockdown to help curb the novel coronavirus pandemic.
Press the 🔔 Icon for notifications of all new updates
