The 30-share BSE Sensex plunged 356.46 points or 0.95% to end at 37,165.16, on Thursday, while the broader Nifty ended lower by 101.50 points or 0.89% at 11,244.70. In July the benchmark indices had gained about 6% after June quarter earnings were in line or slightly better-than-expected.
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Factors that dragged the market
Global Cues: Asian markets corrected sharply after renewed concerns related to trade war between world’s largest economies US and China. Media reports suggested that the Trump administration on Wednesday announced it is looking at the possibility of slapping a 25 percent tariff on $200 billion worth of imported Chinese goods — from the initial 10 percent announced earlier.
Profit Booking after MPC Meet: The correction after Monetary Policy Committee (MPC) indicated that the market may be waiting this event to happen as it has already priced in positives related June quarter earnings season which are in line or slightly better-than-expected.
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Inflation Risk: RBI raised inflation estimates to 4.8% from 4.7% for the second half of FY19.
Earnings: IT companies posted strong numbers in June quarter earnings and results across sectors has been stable so far.