Sensex ends 478 pts down, its biggest 1-day fall since Sept
27 Feb 2012
It was a bad start to the week on Monday - the market saw biggest one-day fall since September 2011 led by huge shorts build up and unwinding of long positions. UP election results expected on March 6 and spike in crude oil prices to 10-month high may have deteriorated investors' sentiment. The fall was not only restricted to largecaps but also to broader markets, which tanked more than 3%.
Indian equities underperformed global peers today. The Sensex fell 477.82 points or 2.67%, to close at 17,445.75 led by selling in 28 stocks.
Meanwhile, the Nifty lost 148.10 points or 2.73% to 5,281.20, extending from previous week's 2% loss. European markets were down 0.7-1% while the Dow Jones futures dropped over 50 points.
Ambareesh Baliga, COO of Way2Wealth warns crude oil prices, election results and monetary policy are worrying the market more.
"Oil prices will have a bearing on the monetary policy. It is possible that there could be a rethink of rate cut in case oil going beyond USD 130 per barrel or towards USD 140 per barrel. At the same time these election results, which is quite uncertain. The market has been expecting a good show from Congress and the SP and them coming together, In case that does not happen then it could be a negative for the markets," he reasoned.
According to him, the market could have a stop at about 5200 on the Nifty.
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