Market records steepest weekly declines in over two years
At close, Sensex ended near the 78,000 mark, shedding 1.5% from the previous session, while the Nifty fell below 23,600, also down 1.5%.
The Indian stock market has been in deep red for the last five sessions with the Sensex going down by more than 2,600 points — from 75,095 points to 72,404 points on Thursday.
The Nifty has also nosedived nearly 850 points, from 22,794 points to 21,957 points, in the last five trading sessions.
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According to industry experts, muted cues from Q4 earnings of largecap companies have dampened investor sentiment and triggered profit booking.
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Also, the volatility index, India VIX, has risen 70 per cent from its lows, which too is creating some uncertainty among traders and investors.
On Thursday, it was up by 6.96 per cent at 18.20 points.
Another reason, according to experts, is that till now, FII investors have been selling in the market and domestic investors have been buying, but due to big events like elections, the purchases by domestic investors have also reduced, leading to a decline in the markets.
In the trading sessions so far in May, FIIs have sold Rs 15,863 crore.
Meanwhile, the US Fed gave hawkish commentary about interest rates that subdued sentiment.
As per market experts, uncertainty over Lok Sabha election results can be another key reason behind the fall in the markets.
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