Sensex tanks most since April
Team Ambitiousbaba and AB are here with a Current Affairs Special Series. In this series, candidates will be introduced to current affairs topics daily, which will not only improve their general awareness but also will ensure that the candidates do not lack in any current affairs topic. Today’s Current Affairs topic is “Sensex tanks most since April”
Domestic stock markets on Monday fell under heavy sell-off that sent the benchmark Sensex crashing by over 1,100 points, or nearly 2 per cent — the steepest fall since April this year.
Major reason for crashing:
- Worrying over the government’s taking a step back on its reform agenda on the farm laws front.
- Reliance Industries Ltd’s decision to “re-evaluate” the Saudi Aramco deal.
- Paytm’s relentless fall scared market sentiment at a time when inflation and interest rate worries are taking a toll.
- A revival of coronavirus outbreaks in the US, Europe and some other regions also considered on investor sentiment.
With the sell-off intensifying in the second half of the session, the Sensex corrected by 1,170 points, or 1.96 per cent, to 58,465.89 while the Nifty50 dived 348 points, or 1.96 per cent, to 17,416.55. According to some researches of equity market valuations concerns came up among foreign portfolio investors (FPIs) who sold stocks worth Rs 3,438 crore even as new-age IPOs, Paytm and PB Fintech, came under severe selling pressure.
Domestic markets opened on a negative note in spite of mixed Asian market cues as China on Monday has not changed the one-year Loan Prime Rate (LPR). During the afternoon session, markets further wandered lower and traded at the day’s low amid revitalization of coronavirus outbreaks in Europe and some other regions. RIL shares fell by 4.42 per cent to Rs 2,363.40 as the company decided to re-evaluate the stake sale to Aramco. Paytm corrected by another 13 per cent to close at Rs 1360.30, taking its total loss to 37 per cent from IPO price of Rs 2,150.
Repressed listing and continuation of weak trading of Paytm, India’s largest new generation fintech, is a big sentimental setback to the domestic market, which was flourishing on the strong primary market. It might be affect the inflow of cash from the retail segment, which has been a key player during the year.
Question & Answer:
Q1. What is ‘Sensex’?
Ans. It is a short form of Sensitive Index. It refers to the benchmark index of the BSE in India.
Q2. What is the base-year of Sensex?
Ans. 1978-1979 is the base year and its value is 100.
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