InvestorQ : What was the reason for such a sharp correction on Monday 12 April?
ishika Banerjee made post

What was the reason for such a sharp correction on Monday 12 April?

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3 weeks ago
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You could call it a Black Monday for the stock markets on 12 April as Sensex lost 1710 points in a single day. Incidentally, this is also the worst correction in the indices since 26 February. There was some logic for the fall because the correction was triggered by concerns over a second round of lockdown in Maharashtra. While there is no confirmation from the state government, most health experts look at that as inevitable.

The sharpest cuts on Monday were seen in banks, NFBC, realty stocks and autos. In short, all the rate sensitives took a hit on worries of higher rates due to higher inflation and also due to the fear of burgeoning NPAs. The lockdown has raised concerns that the growth impulses seen in the last few months could gradually wane.

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