Sensex has 2019's biggest fall

The hardline posturing by Donald Trump administration has continued to pinch Indian markets as BSE Sensex witnessed its biggest fall in the calendar year 2019 on Wednesday.

The 30-share Sensex plunged 487.50 points (1.27%) to close at 37,789.13. The markets began on the negative note with Sensex opening 32 points lower on Wednesday morning. During the day's trade, the Sensex was down 533 points, before witnessing some buying in the last minutes of the trading.

The overall market breadth was also on the negative side, with BSE witnessing 1,816 declines, against 671 advances.

Reliance was the biggest loser on the BSE Sensex on Wednesday, with a decline of 3.35%, followed by Bajaj Finance (3.22%), Tata Motors (2.8%), Bajaj Auto (2.55%) and SBI (2.53%).

All sectoral indices ended in red led by energy, pharma, auto, bank, infra, FMCG, metal and IT. Midcap and smallcap indices also shed 1% each.

On the other hand, broader index NSE Nifty also closed 138.45 points (1.2%) down at 11,359.45.

With this Sensex has crashed 1,170 points, or 3% down with respect to Friday's close in the past three trading sessions. The bear in the markets set in after US President tweeted over the possibility of US hiking tariff on $200 billion of Chinese imports from existing 10% to 25% this week. With these three trading sessions, markets have wiped off all the gains made since March 19, when BSE had closed on 37754.89 points.

Analysts expect the markets to go down further till May 23, when the results of general elections would be announced. "That day it depends on the wins and losses. If BJP witnesses huge losses, we might see markets tank substantially," an analyst said.

However, the fall has not been that spectacular in the midcap stocks, as they have most of the institutional investors had pulled out of the stocks post NBFC crisis in September. "Most of the institutional investors' money has been parked in big companies. They have already pulled out, more or less, from the Midcaps post-IL&FSfiasco," a CEO of the top mutual fund told DH.