INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Key equity indices Sensex and Nifty lurched lower sharply in opening deals on Monday, tracking weakness in global markets
A nearly 380 points fall in the Sensex index came in the wake of a sharp selloff in US stocks as concerns about the health of the world
economy spooked investors
Around 9:20 am, the BSE Sensex was 375 points, or 0.98 per cent, down at 37,790, with only three stocks in the green and 28 in the red
The Nifty pack was 108 points, or 0.95 per cent down at 11,348, with seven stocks advancing and 43 declining
Midcaps and smallcaps also crumbled as the BSE Midcap and Smallcap indices were 0.93 per cent and 0.87 per cent down, respectively, around
that time.
Let's take a look at the factors that triggered the massive selloff in Indian equities this morning:Fear around recessionThe
spectre of recession resurfaced and a wave of selling dragged US stocks to their biggest one-day percentage losses since January 3 after the
10-year treasury yields in the US slipped below three-month rates on Friday
As per Reuters, concerns about the health of the world economy heightened last week after cautious remarks by the US Federal Reserve sent
10-year treasury yields to the lowest since early 2018
Historically, an inverted yield curve - where long-term rates fall below short-term - has signalled an upcoming recession.
Uncertainty over
BrexitThe uncertainty around Brexit is keeping markets nervous
After suffering two defeats, the British Prime Minister Theresa May is trying her best to get the deal cleared by the British parliament
which is staring at possibilities, including a no-deal Brexit to Brextension and even exit from Brexit.
Rupee's weaknessThe Indian currency
slipped by 21 paise today, after suffering a loss of 12 paise against the US dollar on Friday
Even as the domestic currency still remains the best performing emerging market currency over last one month gaining over 3 per cent, its
fresh weakness weighed on investor sentiment.
Technical viewThe Nifty index formed a bearish candle for the second straight session on
Friday, which resulted in a Doji kind of indecisive formation on the weekly chart
Nifty last week faced resistance exactly at the lower end of the 30-month-long upper rising channel
It had breached this channel on the downside in the first week of October.
