Sensex sheds 600 pts on global tensions, domestic woes

Sensex sheds 600 pts on global tensions, domestic woes

After opening flat in the early morning, the Indian indices on Tuesday witnessed a meltdown during the course of the day, owing to the global geopolitical tensions and domestic economic woes.

The 30-share benchmark of Bombay Stock Exchange (BSE), Sensex opened 46 points higher. However, during the day the index crashed by over 600 points as sell-off persisted. At the time of filing this copy, BSE Sensex was trading at loss of 678.48  points at 36,444.83, down 1.8%. Hero MotoCorp was the worst loser on the index losing over 4.5%.

The overall market sentiment was also highly negative with 1,602 declines against 757 advances.

All the indices of BSE were trading with losses in excess of 1% at the time of filing this copy.

The situation on broader index, National Stock Exchange’s (NSE) Nifty50 was no different.  At the time of filing this copy, the 50-share index was trading at points with a loss of 10,811.85 points, losing 191.65 (1.74%) points during the day’s trade, till now.

Experts attribute the meltdown to global geopolitical tensions after Kingdom of Saudi Arabia was forced to cut of 60% of its daily oil supply, post a pre-dawn drone attack on Aramco installations by Houthi rebels of Yemen. According to analysts, a lot has been contributed by the economic slowdown and the policy paralysis that country has been witnessing off late.

"Saudi response vis-a-vis the drone atacks will be a significant factor in determining volatility in Indian markets (Vix), in addition to domestic economic trends," Anubhav Shrivastava, Partner, Infinity Alternatives said.