4 Reasons Why Sensex Slips Below 51000

Indices have extended morning losses and towards the end of the session even breached 51000 levels on the Sensex, with loss of over 1 percent.

Here are the reasons leading to losses:

4 Reasons Why Sensex Slips Below 51000

1. Global cues remain weak:

After losses in overnight trade in the US, Asian markets also saw losses and European markets also traded with losses. In the US, there have been increase in the weekly unemployment claims which dented investor sentiment. Though, policymakers in the US are seen pushing for the US coronavirus aid.

2. Coronavirus cases see resurgence in India:

In India, in the financial capital of India, there has been seen a rise in cases and because of it the state government is reconsidering fresh lockdowns at some of the places and this may lead to standstill of some of the business activities yet again.

3. Financials and banks see weakness:

Amid profit booking after having shone over 40% in February alone, Nifty PSU Bank saw a toss by over 4 percent.

4. Technical indicators:

Also, there is expected consolidation in the near term as per experts. "The daily momentum indicator has turned in the favour of the bears. Thus, the index seems to have stepped into a consolidation phase. The levels of 15,000-15,430 will be the range for the consolidation. However, if 15,000 is breached on a closing basis, the index is in for a deeper correction," said Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas.