Sensex crash today: Indian equity indices traded lower today (March 19) dragged by heavyweights TCS, Reliance Industries, and Infosys. Asian peers are also declining ahead of the US Fed policy decision this week. Sensex shed over 600 points to reach below 72,200 level. Nifty gave up 21,900 mark and the market capitalisation of all listed companies on BSE declined by ₹3.71 lakh crore to ₹375.08 lakh crore.
Here are the top reasons for Sensex crash today:
Global effect: Asia’s benchmarks remained on the back foot- following losses of more than 1% each in Hong Kong’s technology shares and South Korean equities. US contracts pointed to losses as well and Japan's Nikkei share average swung between small gains and losses. This comes after the Bank of Japan announced an end to its long-running ultra-accommodative stimulus programmes.
IT stocks effect: TCS experienced a 3% decline after 2.02 crore or 0.6% shares changing hands in a block deal on the counter. HCL Tech, Wipro and Infosys - also traded with cuts resulting in losses on the index. The IT index has become the worst sectoral loser today and is down 2%.
FIIs 'sell' mode: Foreign portfolio investors sold Indian shares worth ₹2,051 crore on a net basis today.
Oil causing boil: Oil prices edged down early after gaining in the previous trading session as the prospect of rising supply from Russia. Possibility of slower-than-expected downstream demand in sectors such as jet fuel could also be resulting in the same. Brent crude remained above $86 per barrel but oil may be having an impact on the stock market as well.