Bloodbath on Dalal Street, Sensex tanks 1,939 points
- EP News Service
- Feb 26, 2021
MUMBAI: In one of worst single day fall, the BSE benchmark index, the Sensex nosedived about 1,940 points or 3.80 per cent to settle just above the 49,000-level on Friday, mirroring losses in global markets after a rout in global bond markets spooked investors. Following closely the NSE Nifty 50 index also cracked 3.76 per cent or 568 points to settle at 14,529.15.
The selling
pressure across the board was so intense that at the days low the Sensex
dropped as much as 2,149 points or 4.2 per cent and Nifty 50 index crashed 4.2
per cent to fall below its important psychological level of 14,500 mark.
All index
stocks closed in the red with ONGC, M&M, Axis Bank, Kotak Bank, Bajaj
Finserve, Power Grid, HDFC and Bajaj Finance falling between 5 to 6 per cent.
On BSE also banking and financial stocks led the fall as the Nifty Bank,
Private Bank, PSU Bank and Financial Services indices fell up to 5 percent.
On
Thursday, the US 10-year yield climbed to 1.614 per cent, the highest in a
year. A concern over inflation in the US is the reason behind rising of bond
yields. The bond market is expecting the likely rise in inflation to push the
US Federal Reserve to either lower monthly bond-buying or hike interest rates,
an adverse factor for markets like India, which have been a major recipient of
foreign inflows of late.
Global
stocks have crashed on Friday, with Asian shares down by the most in nine
months. MSCI's Emerging Markets equity index suffered its biggest daily drop in
nearly 10 months and was 2.7 per cent lower, while European shares opened in
the red, with the STOXX 600 down 0.7 per cent.
The MSCI
world equity index, which tracks shares in 50 countries, was 0.9 per cent lower
and was heading for its worst week in a month.
Asia saw
the heaviest selling, with MSCI's broadest index of Asia-Pacific shares outside
Japan sliding more than 3 per cent to a one-month low, its steepest one-day
percentage loss since May 2020.
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