After being resilient to some of the global and domestic events such as the US Fed rate hike as well as recent BJPs fall-out in the state assembly elections, the benchmark indices have been dragged lower by as much as 450 points.
The prime factors around this is again a drop in rupee's value which in yesterday's trade breached 70 mark and closed at 69.72 per US dollar. Another reason is the sharp fall in heavyweights such as ICICI bank, Infosys etc.
In the last 7 trading session barring Thursday's trade, Sensex has gained close to 4% or 1500 points Except for the PSU banking space all the indices were down. PSU banking basket gained on the back of extra fund infusion being announced.
Further, globally the recent Fed rate hike which also hinted at further rate hikes in the years ahead, there is worries of recession again taking over the US economy. And in its wake, globally shares have scaled down to 2-year lows.
Also, this is due to a correction after profit booking by investors with the surge in benchmark indices.
Sensex was last quoting down by 448.69 or 1.23% at 35982.98 while Nifty traded down by 1.25% at 10814.90.