Sensex is down today after a large drop in Nifty.
The Sensex is down today after a large drop in the Nifty. The Sensex has fallen by -1.22% and the Nifty has fallen by -1.54%. Both of these drops were sparked by a sell-off in shares of several big companies, including Reliance Industries, Tata Consultancy Services, and State Bank of India.
The Sensex is an index that tracks the performance of 30 major Indian companies on the Bombay Stock Exchange (BSE). The Nifty is another index that tracks 50 major Indian companies on the National Stock Exchange (NSE). It’s important to note that neither of these indices are actually owned or managed by any company or organisation; they are merely tracked as a way to gauge how well stocks are performing.
Why was there such a large drop?
“Big money outflows from FII’s”
- Inflows into foreign direct investment (FDI) were negative for two consecutive months in August and September 2019. This indicates that foreign investors have been selling off their investments in India.
- Foreign investors pulled out Rs 13,000 crore from Indian markets between October 1 and October 10, which may have contributed to this fall.
- Foreign investors have also been selling off their holdings in debt instruments like bonds and bank stocks, which might have also contributed to this fall.
