Sensex Falls 800 pts, Nifty Trades Below 24,800 — Know Key Reasons Behind Today’s Stock Market Crash

Indian benchmark indices slipped in the early trade today. As of 10:45 am, Sensex fell by 838.64 points at 81,337.81, while Nifty was down by 238.40 points to 24,762.75.

Broader market indices tumbled following intense selling pressure and heightened volatility. Banking, IT, and financial services are having a tough time today.

Why are markets falling today?

A spike in Covid-19 cases has prompted investors to press the panic button, leading to heightened selloffs in riskier segments like stocks, cryptocurrencies, and high-yield bonds. Notably, underperformance in equity markets comes on the back of surging infections and weak Asian markets.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market may be entering a consolidation phase. “High valuations are prompting selling on rallies, while any dip will likely be bought into, given that mutual funds are sitting on ample cash,” he noted.

An upward momentum is unlikely to take place without clear indications of upbeat quarterly earnings, which is something that remains a few quarters away. However, he pointed to “slow accumulation in rate-sensitive sectors like autos,” anticipating rate cuts as inflation continues to moderate.

He added that investors are sticking to Systematic Investment Plan as the inflows in the scheme remains strong.