Sensex tumbles 928 pts, Nifty closes 1.5% down: Factors behind today’s crash

    All sectors ended in red, as metal stocks were the top drag at 2.64 per cent.

    Sensex Nifty crashSensex tumbled 955 points in the afternoon trade. (File image)

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    Domestic equities crashed on Wednesday as global sentiments weighed down Indian indices. Key indices Sensex and Nifty tumbled 1.53 per cent in the afternoon trade. BSE benchmark Sensex crashed 928 points, slipping to 59,744.98 at close, while NSE Nifty50 tumbled 272 points, to 17,554.30.

    All sectors ended in red, as metal stocks were the top drag at 2.64 per cent. Banks and realty stocks were also among the laggards today.

    Except India Vix, all broader markets indices were also trading in red in the afternoon trade.

    What are the factors pulling Indian indices down?

    Global markets: US stocks ended nearly 700 points after reports stated that service sector swinged back into expansion in February. The Dow Jones Industrial Average ended 697.10 points, or 2.06 per cent down, to close at 33,129.59. Tuesday was the index’s worst fall since December 15 as sectors ended in red.

    US Fed minutes: Investors are keenly awaiting the minutes of latest US Federal Reserve meeting, scheduled to be released on February 22. There are concerns whether the Fed will change its stance on interest rates and US inflation or remain hawkish.

    Russia-Ukraine war: As Russia’s invasion of Ukraine will mark one year on Friday, February 24, Russian President on Tuesday has suspended a nuclear arms control treaty with US and announced new strategic systems on combat duty, and has also threatened to resume nuclear tests.

    RBI minutes: The Reserve Bank of India is also set to release the minutes of its policy meeting that happened in early February. Investors await cues on the trajectory of rate hikes by the central bank.

    Adani stocks rout: Investors continue to exit Adani group firms after US-based short seller Hindenburg Research published a report against the conglomerate. The market valuation of Adani group companies has slipped below $100 billion as the fall in share prices continued on Wednesday. Adani Enterprises tumbled over 10 per cent today, while many other Adani group stocks, including that of Adani Power, Adani Transmission, and Adani Total Gas, were locked in 5 per cent lower circuit.

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