Sensex, Nifty crash: Why share market is down today
India Today
Sensex was down by 0.62 per cent or 337.99 points at 54,497.59 and the Nifty 50 fell 0.63 per cent or 103.75 points at 16,307.50.
The Sensex and Nifty on Monday fell more than one per cent amid worries over global growth due to lockdowns in China and policy decisions by the Reserve Bank of India (RBI) and the US central bank.
Earlier this morning, the NSE Nifty 50 index was down 1.06 per cent at 16,237.20, while the BSE Sensex fell 1.09 per cent to 54,237.59.
The benchmark equity indexes rebounded a little. The Sensex was down by 0.62 per cent or 337.99 points at 54,497.59 and the Nifty 50 fell 0.63 per cent or 103.75 points at 16,307.50.
Benchmark indexes fell for a fourth straight session on Friday to mark their worst week since November, dented by a surprise interest-rate hike by the RBI, foreign fund outflows, and mixed corporate results.
Even after Nifty's correction last week, it is trading at around 19 times FY23 earnings, which is higher than the long-term average and not a buyable valuation, particularly when global equity markets are facing headwinds like risk of slowdown in economic growth, Ukraine war and supply-chain disruptions caused by stringent lockdown in China, V K Vijayakumar, chief investment strategist at Geojit Financial Services said.
Shanghai authorities were tightening the city-wide Covid-19 lockdown they imposed more than a month ago, prolonging into late-May.
In the domestic market, Nifty's public-sector bank, metal, energy, and banking sub-indexes were among the top losers, declining 1 per cent to 2 per cent.
