InvestorQ : Why did the Nifty and the Sensex correct so sharply on 15 June? Was it due to global factors?
Mitali Bhutta made post

Why did the Nifty and the Sensex correct so sharply on 15 June? Was it due to global factors?

Answer
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Dawn Cherian answered.
3 months ago


After a sharp correction last week, the trend continued on Monday as global and domestic pressures built up in the stock markets. Nifty fell 159 points to 9814 while BSE Sensex was down 552 points at 33,229. Mid cap and small cap stocks also took deep cuts. The panic in the markets was apparently due to the sharp spike in Coronavirus cases in India and the fears that there could be another round of lockdown imposed by the government. Most of the Asian markets like the Nikkei and the KOSPI were lower and that rubbed off on the Indian markets. Even the Hang Seng and Australia's ASX 200 fell by 2.2% each. There were news reports of a surge in cases in Beijing and that also spooked markets. India is already averaging 11,000 to 12,000 per day, which is substantially higher than previous occasions. COVID cases are rising exponentially in the industrially developed states of Maharashtra, Tamil Nadu, Delhi and Gujarat with a potential to impact economically. The heaviest sector, banking, came under pressure with the bank index down over 3.6%.