Mr. Rahul Sharma, Sr. Technical Research Analyst, Equity99
Global factors led to a 1000-point cut in the Sensex in opening trade today, which pushed the index below its crucial support at 34,000 while for the Nifty50, the cut was over 300 points. Overnight, US markets saw their worst decline in 8 months with rising Treasury yields and trade-related worries weakening risk appetite for equity investors. The Dow slipped 831.83 points, at 25,598.74, the Nasdaq was down 315.97 points, or 4.08 percent, at 7,422.05. SGX Nifty was Down by 2.66% before the opening of Indian markets.
Most of the Asian markets are also in the same drop which weakness in US markets. Japan's Nikkei sank 3.2 percent in early trading, which would be the biggest daily drop since March. The recent fall in rupee which pushed the currency below Rs 74/USD has made returns for foreign investors slightly unattractive. Also, it looks like a rotational trade is happening as money is moving from risk assets to risk-free assets.
India which was considered a relatively safe market a few weeks ago and now is fast losing its position after the INR plunged to a record low and crude oil prices soared to new highs.