On Monday, Indian Shares slid on Monday as daily coronavirus infection surpassed 1,00,000 for the first time and some states imposed fresh restrictions on outdoor movement and sparking concern about the pace of the country’s economic recovery. Here are the detailed reasons why the stock market crash today.
At close. the Sensex was down by 870.51 points (1.74%) at 49159, and Nifty was down by 229 points (1.54%) at 14637.
Why Stock Market Crash Today
There are mainly the three factors, why both Sensex and Nifty fell sharply on Monday.
1. Covid-19 Cases: The week started on a negative note for the Indians Stocks Market mainly due to a sharp surge in the COVID-19 cases across the country. While rising covid cases lead to market weakness in early trade, the fear of fresh lockdowns seems to have taken a bigger toll on the stock market.
Maharashtra government imposed stringent curbs including a complete lockdown on weekends in the state.
2. Spike in Bonds yield: A spike in the US bonds yield also dented market moods on Monday. The two-year US treasury yield rose to 0.186%, near its eight-month peak of 0.194% touched in late February.
A spike in the bond yields does not bode well for emerging markets like India as they lead to FII outflows.
3. Waiver of Interest on Loan A/c- Meanwhile, a media report said state-run lenders may have to bear a burden of up to 20 billion rupees due to a recent court ruling on the waiver of interest on all loans a/cs which opted for a moratorium last year.
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