Sensex at 1-year low. Here's what sent stock market in a tailspin

ETMarkets.com

Jun 16, 2022

​Stock Market Crash

As investors began digesting the implications of the US Fed's rate hike roadmap and dovish commentary to fight inflation, Sensex plunged over 1,000 points and Nifty hit a new 52-week low of 15,335.10.

Image Source: BCCL

​Bearish Mood

The mood on Dalal Street was clearly bearish as out of 3,474 stocks traded on BSE, a vast majority of 2,754 stocks ended in the red

Image Source: iStock

​Market Cap Lost

Investors turned poorer by about Rs 5.5 lakh crore as the market cap of BSE-listed firms dropped to Rs 239 lakh crore.

Image Source: iStock

​Stocks At 52-Week Low

A total of 317 stocks hit 52-week lows including Tata Steel, Tech Mahindra, Wipro, IndusInd Bank, Bajaj Finance among others.

Image Source: iStock

​Fed Fear

While hiking the interest rate by 75 basis points to a target range of 1.50-1.75 per cent, the Fed downgraded its US growth forecasts for 2022 and 2023 but remained adamant there would be no recession.

Image Source: AFP

​FPI Selloff

Data showed foreign investors have sold equities to the tune of Rs 1,92,104 crore so far this calendar. This includes Rs 24,949 crore worth of FPI sold in June so far.

Image Source: iStock

​Global Market Fall

The fall in Nifty was in tune with what's happening in markets globally. Most Asian stocks erased gains. US futures were trading 2 per cent lower.

Image Source: iStock

Recession Worries

Market experts are worried about whether the Fed's rate hike plan would be able to control inflation and whether it would lead to a recession.

Image Source: iStock

Technical Weakness

The March low of 15,671 had not been breached on a closing basis for three straight sessions. Nifty50 has not only breached that level intraday, but has also tested its support of 15,400. The weakness, if extended, could lead to test of 15,300 and 15,100 levels.

Image Source: iStock

For more such web stories click on the ET icon below.

Open Economic Times