Nifty reclaims 10500 mark; Tata Motors, RIL, SBI stocks down

Nifty reclaims 10500 mark; Tata Motors, RIL, SBI stocks down

Nifty reclaims 10500 mark; Tata Motors, RIL, SBI stocks down

At one point, both indices were over 2.5% lower than the previous close.

Benchmark indices today recovered to an extent, with the benchmark Nifty closing within spitting distance of 10,500 level while S&P BSE Sensex closed 1.61% lower at 34,195.94. Reportedly, investors lost around Rs 4.95 trillion amid sell-off in the broader market. In last three trading sessions including today, investors have lost almost Rs 10 lakh crore od wealth. Following Budget on February 1, even after declaring there is a long-term capital gain tax, the market was okay at end of the day.

Today's fall comes on the back of a spike in bonds yields. USA stocks tumbled yesterday, as interest rates headed higher amid concerns of returning inflation.

USA stocks saw their biggest one-day fall in six years on Monday, as investor profit taking brought the market back down from record highs seen in late January, after benchmark bond yields rose to a four year high last week.

The rupee lost 0.2% to trade at 64.19 per U.S. dollar, BloombergQuint reported.

Vedanta, GAIL, SBI, HINDALCO, Cipla, ONGC were the top NIFTY50gainers, with the rise percentage ranging from 3% to 5%. Furthermore, Taiwan's Tail plunged an nearly complete 5 per cent, down to 10,404 points (at the time of publishing), which is the index's biggest slump in 6.5 years, according to Market Watch.

BSE Sensex was down 618.46 points or 1.78 percent at 34,138.70. Japan's Nikkei dived 4.7%, its worst fall since November 2016, to four-month lows.

Asian markets followed the trend with Tokyo diving more than 5 per cent, Hong Kong 4 per cent and Sydney 3 per cent, Singapore 2.3 per cent, Seoul 3 per cent, Taipei 3.7 per cent, and Shanghai 2.1 per cent. Also, the rising income for India in the third quarter along with the recovery of the manufacturing units and retail business for the shake off caused by GST implementation, all together led to this rise in share prices.

For many analysts, the current bout of selling fever is primarily a matter of "market psychology", said Christopher Dembik, chief economist at Saxo Banque.

That has raised concerns about a drop in foreign investment into India.

Investors also turned cautious ahead of the RBI policy meet over fear of rate change amidst inflation worries.

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