All sectoral indices ended in the red with the Nifty FMCG falling 2.4 percent while Nifty Midcap Index gave up 19,000-mark, ending with cut of 1.3 percent
The Nifty50 gave up its crucial support of 11,300, which indicated that the fall may continue further, experts said, adding the rupee and trade war woes may continue to make headlines
We are seeing global volatility and emerging markets are under pressure. So the market falling 5-10 percent is par for the course,” Rashesh Shah, CEO of Edelweiss Capital told CNBC-TV18
Here are the few reason why market nosedives:
The Indian rupee weakened further after seeing stability from the beginning of day today, hitting fresh low of 72.74 on rising dollar demand and higher crude oil prices
Globally investors turned cautious awaiting developments in International trade disputes. Asian markets ended mixed with the China’s Shanghai Composite index shedding early gains to end at its weakest close in 31 months
Trade war concerns escalated as China asks WTO for sanctions in US trade dispute. China has already indicated that it will respond with tariffs if the United States takes any new steps on trade.
Crude oil prices increased further on supply worries after Iranian exports started declining on US sanctions.