Today, Benchmark equity indices BSE Sensex and NSE Nifty plunged down by 1%. While Sensex plunged down by 420 points at around 12noon trade, Nifty plunged by 130 points at the time.
There are several factors driving this behavior. 3 Major drivers include:
1. Falling Rupee
Rupee value against Dollar has reached 72.65 and is expected to get devalued even further. This is causing turbulence in the stock market driving bearish sentiments.
2. Widening Current Account Deficit
Current Account Deficit is hovering around $15.8 Billion against $15 Billion last year April-June quarter. This is majorly due to the increasing trade deficit. This is again driving bearish sentiment in the market.
3. Increasing Crude Oil Prices
Crude oil prices are at all time high. India imports two third of its crude oil requirement. Currently Brent Crude price is hovering around $77 a Barrell as of now. Further increase in prices would severely cause further inflation in the economy thus giving a bearish sentiment to the investors.
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