The stock market saw a sharp decline in the morning hours of trading on Monday, with the Sensex plunging close to 800 points and the Nifty tanking over 250 points. This was attributed to fresh foreign fund outflows and the cautious stance of investors ahead of the upcoming earnings season. The broader markets also traded in the red, with the Nifty Microcap 250 leading the losses and the Nifty Metal and Realty indices dominating in the red. Meanwhile, the global oil benchmark Brent crude saw a slight dip, while the US markets ended on a positive note on Friday.
Share Market Plunges on Monday Morning
The Indian stock market witnessed a significant decline on Monday, August 29, 2023, with the Sensex plunging close to 800 points and the Nifty tanking over 250 points. This sharp downturn was primarily attributed to fresh foreign fund outflows and investors adopting a cautious approach ahead of the upcoming earnings season.
Background
The Indian stock market has been on a rollercoaster ride in recent months. After reaching record highs in April 2023, the market has corrected significantly due to a combination of factors including rising interest rates, inflation, and geopolitical uncertainties.
Foreign investors, who have been net sellers in the Indian market for several months, continued to withdraw funds on Monday. This outflow of foreign capital has put pressure on the rupee, which has weakened against the US dollar in recent weeks.
Key Events
Sharp Decline: The Sensex opened lower by around 200 points on Monday and continued to decline throughout the morning session. By 12:30 pm, the index had plunged close to 800 points. Similarly, the Nifty lost over 250 points during this period.
Broader Market Impact: The broader markets also traded in the red, with the Nifty Microcap 250 leading the losses. The Nifty Metal and Realty indices also dominated in the negative territory.
Global Cues: The global oil benchmark Brent crude saw a slight dip on Monday, while the US markets ended on a positive note on Friday. However, these factors had limited impact on the Indian market.
Top 5 FAQs
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